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Recent content by Deepak Chitnis

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    Happy Birthday David Harper!

    Happy Birthday David Harper!
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    R19.P1.T3.FIN_PRODS_HULL_Ch5_Cash_Or_Carry_Learning_Spreadsheet

    Hi @gargi.adhikari did you tried solving this, with converting dividend yield to continuous? I tried this and I got answer 1313.06521, I think difference is not that much, that's why they are not converted(my logic, @David Harper CFA FRM can elaborate more!). On actual exam I don't think there...
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    Happy Birthday David! Thank you for creating this forum and for such great study material

    Happy Birthday David! Thank you for creating this forum and for such great study material
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    Out of the Office for Thanksgiving

    Happy thanksgiving @David Harper CFA FRM and @Nicole Seaman. Enjoy your holiday:)!
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    GARP.FRM.PQ.P1 Interest rate parity (garp13-p1-6)

    Hi @Angelinelyt you are assuming rate are continuously compounded, but rates are discrete compounding, read question carefully it says 4% rate per year, it means you should use formula Forward = Spot x (1+domestic interest rate)/(1+foreign interest rate), so 1.25*(1.04/1.07)=1.21495 or round to...
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    GARP.FRM.PQ.P1 Interest rate parity (garp13-p1-6)

    Hi @Angelinelyt Ft =S0 * e(r-rf)T should be used when rates are continuously compounded and, Forward = Spot x (1+domestic interest rate)/(1+foreign interest rate) should be used when rates are discrete compounding (yearly, half yearly). Hope that helps you! Thank you:)!
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    GARP.FRM.PQ.P2 hazard rate (garp16-p2-33)

    Hi @frmqiu it is conditional default probability it should be calculated as default in 2nd year - default in 1st year/survival in 1st year = 0.27385-0.14789/0.85214=0.14782. Hope that helps. Thank you:)!
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    PQ-external Hedging, Bonds & Yield Based Hedging

    Answer of 3rd question should be C, because 44.9*1.0137=45.52 and 45.52-44.9=0.61513 or 0.62 simply means we have to sell additional 0.62 to hedge position completely. Hope I am right. Thank you:)!
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    Win prizes for forum participation!!

    Thank you so much @Nicole Seaman please let it accrue. Thank you:)!
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    GARP.FRM.PQ.P2 asset vs liability (garp16-p2-8)

    Hi @frmqiu I think you are using old practice exam. David has reported garp this issue and garp has updated many of the answers, I can see A as a answer in my practice exam. Try to download it again. Thank you:)!
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    Whatsapp 2016 FRM Part 2 Group (Inactive)

    Please add me @arkabose my number is +919767405334. Thank you :)!
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    Win prizes for forum participation!!

    Thank you so much @Nicole Manley. Please let it accrue. I appreciate it! Thank you:)!
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    VaR Confidence level to get non-zero VaR

    Hi @emilioalzamora1, as you know var is the worst expected loss. As question stated there is 1/90 chance of lossing 1000000 that clear means that var is non zero because there is some loss chance. Confidence level is estimated as 100%*(1-p), chances/probability is given as 1/90. Hope that...
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    Congratulations!!!!!!

    Congratulations!!!!!!
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    PQ-external Question about definition of component VaR

    Hi @no_ming you are right! (for more clarrification view https://www.bionicturtle.com/forum/threads/individual-var-vs-component-var.1373/). In this question you do not need to apply defination of component var here ( I think question wil clearly ask you to calculate component var, not sure...
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