I guess that sort of sums it.
1)It wasn't at all very diverse. Lots of stuff were repeated while many many weren't tested.
2)There were dumb stuff about Basel (I call it dumb because, instead of asking to remember memorized stuff (not formula application..just plain facts), it would have...
David few more questions:
a) Practice exams(the 3 by garp for 08) this year are more wordy and less quantitative (more comparisons/qualitative) sort of?
b) Are practice exams tougher/ easier or about the same as the real deal?
c) Is it always 70 + 70 questions or it varies?
I dont get this at all! I mean how do we know the duration is 7 anyway? The bond is at par can be assumed but there is no yield or coupon info. Is there a way to back out yield from yield vol? Am i missing something?
1)I dont remember Hull and no time to read 48/49 pages
2)I think i was right and stand by it for the case of selling bronze.
3) There are conventions with contracts. I am not sure if that is relevant here.
But lets say buying a future contract in oil might mean delivering oil...
After harvest, there are other factors that set in, is there sufficient demand, where to store the stuff age old crap.
So prices normalize (or fall).
Not fall. PRICES NORMALIZE OR INCREASE BACK AFTER SHARP FALL.
Yes, i don't know about exam questions but there are tons of articles clarifying what alpha means and most of it is to show "ALPHA IS THE RETURN OVER AND ABOVE THE MARKET" thats how they sell their alpha to clients and get investment. However, again, exam trick could be to assume a benchmark...
Come on, screw hull! See the common sense here. You are going to sell the underlying in 3 months. Are you going to sell futures as well to hedge it??????
Hedge of a call option is going short the stock. Hedge of a short call option is to buy and hold stock.
I guess you are just getting hung...
Here is what i would think about it:
Main decision lever is harvest and decision point at harvest or just before harvest.
So right before harvest, a "wow" (positive supply shock sort of) hence prices fall in near term.
After harvest, there are other factors that set in, is there sufficient...
Explanatory power (usually is R-sq) for the regression examples. May mean something else in models. R2, adj R2, or any other measure.
Unwinding is taking negative position. CDS unwinding for e.g. is to sell it at maturity (if default hasn't occurred) and similiarly for bonds rolling over...