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    2020 GARP practice exam Q1

    I always get a little bit confused about the following question. Given future/forward are doing similar thing, I assume whether future/forward price is higher, depends on whether or not future is "better" than forward (otherwise people can choose the other instrument while achieving the same...
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    Is there any general rule to keep decimal points (for probabilities, etc)

    For example, in the binomial tree model, given the volatility, the u=exp(\sigma*\sqrt{\delta t}). In the following example, u=exp(0.22*\sqrt{0.5}). Moreover, p=(exp((r-q)\delta t)-d)/(u-d) I think I understand how to do the following problem. However, my question is, how many digits should we...
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    GARP Book 4 -Question 11.12

    Question 11.11: A bond paying a coupon at the rate of 6% is held for six months. The price at the beginning of the six months is 102 and the price at the end of the six months is 101. What is the gross return? Question 11.12: If the bond in Question 11.11 is financed at 2% (per annum), what is...
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    GARP Book 3 - Question 20.17

    Thanks @David Harper CFA FRM ! This is helpful. I saw the practice exam's solution will also give "reasonable calculation" for wrong answers. I hope they will not test the GBP/EUR, EUR/GBP in the real exam ;) (so that if we got wrong direction, the result is not one of the choices ).
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    GARP Book 3 - Question 20.17

    Question 20.17: Consider a currency swap where interest in British pounds at the rate of 3% is paid and interest on euros at 2% is received. The British pound principal is 1.0 million pounds and the euro principal is 1.1 million euros. The most recent exchange has just occurred and the interest...
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    Frm book 3 problem 8.20

    Thanks! I was actually browsing the webpage. I must have been skipping that thread :) anyway thank you very much!
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    Frm book 3 problem 8.20

    Question 8.20: On January 15 of Year 1, a company decides to hedge the purchase of 100,000 bushels of corn on February 15 of Year 2. The following table gives futures prices (cents per bushel) of three selected contracts on four different dates. Explain how the company can use the contracts to...
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    Is there a Whatsapp Group for FRM 1 2020?

    hey can you add me? thanks! +1 9292317845