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1. ### Exam Feedback November 2018 Part 1 Exam Feedback

I passed! 1, 1, 1, 1!!! I’m so happy!! Thank you @David Harper CFA FRM and @Nicole Seaman. It’s not the first time you read this and this certainly won’t be the last, but I couldn’t have done it without BT. Your genuine desire to help people understand the material and pass the exam goes way...
2. ### Chapt.5 Tuckman - Hedging PF with key rate exposure

Hi @David Harper CFA FRM, I have a couple of questions related to the study notes on the chapter mentioned in title. Specifically, p97, I am trying to understand using the spreadsheet how we built the overall KR01s hedges to our initial portfolio positions. In particular some columns leave me...
3. ### R20.P1.T3.McDonald Ch6: Strip Hedges

Thank you David for your explanations. They "connect the dots"!!!
4. ### R20.P1.T3.McDonald Ch6: Strip Hedges

Hi @David Harper CFA FRM, Thank you for this paragraph, very helpful in understanding strip vs. stack hedge. However, it also made me realize I have sort of a big question mark on the strip hedge logic. Just to re use your example above, but even if the curve is flatter in my opinion, unless...
5. ### Forward and Futures Market (lease rate)

Thank you David. Yes, when looking at the forum for answers to my questions, I could see how the gaps in McDonald vs. Hull apporoaches created understandable confusion between lease and convenience yield, which is why I wanted to make sure I got this right. That said, thank you for sharing your...
6. ### Forward and Futures Market (lease rate)

Hi @David Harper CFA FRM, Allow me to follow-up on the thread above, as I have a question that is closely related to that topic yet slightly different, - if a lease rate of L is associated with my ownership of gold, the futures price F(0,T) will be expressed as F(0,T) = So*exp[r-L]*T -> now...
7. ### Options on futures contracts

Hi David, It's perfectly clear now, thank you very much. I very much appreciate the time you take to answer so many questions, and in a way that always make concepts so clear. Really. I don't know how I'd study without BT. Kind regards.
8. ### Options on futures contracts

Hi David, I was wondering if you could give an example of how an option on a futures contract would work concretely? I am having a hard time figuring out what are the actual steps on this one. Let's say we have a call for instance - is the strike price the same as the price of the underlying...
9. ### Errors Found in Study Materials P1.T3. Financial Markets & Products

@Nicole Seaman , done!
10. ### Errors Found in Study Materials P1.T3. Financial Markets & Products

Hello, Just a couple of possible typos I have noticed related to the study notes on Hull Chapter 6 - Interest Rates futures. under the LO "Calculate the final contract price on a Eurodollar futures contract", the June (settlement) contract price reads 990,037.75 instead of the actual...
11. ### Hull Chapt 4 (IR) Continuous and discrete compounding

Hi @David Harper CFA FRM, I have a question regarding the "switch" for lack of a better term, between continuous and discrete compounding, after reading your example in the BT notes p. 55 (derive fwd IR from a set of spot rate). A set of continuously compounded zero rates is provided, which we...
12. ### Cash settlement in futures contracts

Many, many thanks as usual @David Harper CFA FRM. I’m actually planning to take the test in November (full time job and little baby at home!), so I truly hope I didn’t keep you from answering more pressant questions from the Bionic Turtle community.
13. ### Cash settlement in futures contracts

Hi @David Harper CFA FRM I think I am getting slightly confused regarding how a cash settlement actually works. - > initially I thought we were basically realizing our payoff: for instance, an investor goes short on a futures contract for 100 bushels of wheat for a total of \$10,000. Let's say...
14. ### Errors Found in Study Materials P1.T3. Financial Markets & Products

Aaah of course, sorry!! Thank you very much @Nicole Seaman and @David Harper CFA FRM - and apologies for misinterpreting the sentence.
15. ### Errors Found in Study Materials P1.T3. Financial Markets & Products

Hi @David Harper CFA FRM , @Nicole Seaman , Regarding Hull, Chapter 1: Introduction (Options, Futures and other Derivatives), p12 of BT study notes read "Options like futures provide a form of leverage". While I agree on the leverage part, is it not a mistake to refer to futures as options...
16. ### Diebold Chapter 5 & 6

Hi, I have a few questions following my reading of the syllabus related to Diebold Chapt 5 and 6, as detailed below: (1) linear vs. non linear trends. I seem to remember when reading the Stock and Watson syllabus that the concept of linearity applied to the parameters (i.e. B0, B1, etc.)...
17. ### Stock & Watson Chap 7

Got it! Thank you again, @David Harper CFA FRM
18. ### Stock & Watson Chap 7

Thank you very much @David Harper CFA FRM, very helpful as usual! I think I get a little bit confused in my understanding of the F statistic that is replicated in the syllabus, i.e. F= [(SSR r - SSR unr/q) / SSR unr/(n - Kunr -1)]. I understood it as the homoskedastic-only Fstat to be used in...
19. ### Stock & Watson Chap 7

Hi I have a couple of questions on the syllabus for chapter 7 as detailed below: (1) when we talk about computing the test statistic for a single regression coefficient, we specify that it follows a student's t distribution with n-k-1 df (p43). Which we will compare against the corresponding...
20. ### Sampling distribution of OLS estimators

Thank you @David Harper CFA FRM. This helps