Trust all well! I have renewed BT again and looks excellant this time. Can you provide me with a link where I can view or download the Early Bird 1 - 3?
I have a doubt non-related to the FRM curriculum and hence couldn't understand where to put up on the forum. I need some...
I am sure that David will come up with better concepts and ideas behind your query. But, I would like to provide my inputs as well to make the forum more interactive. Would also expect you to provide your ideas to my queries or concepts in days to come.
Well, I am...
Hi David - Thanks for your time and consideration. Every post of yours come in as a motivating factor. Here are a few things which I want to know or put across.
@ Since you are developing the forum and must be under production, is it okay for me to put across some ideas or queries across...
(This is just a copy of the email I had sent across yesterday - would be looking forward to hear from you.)
Trust all well! It's been almost an year since I last posted any update. Not that it had to do with too much of work, but to some extent yes. After the not-so-shocking...
No David, This is certainly not from Bionic. It is from the Schwesers Pro Software. I went by elimination and found only D to be the last best option. Regarding option (B) I had doubts but clarified now.
Thanks again, Avi
Also I didn't understand the direction of the Price. It's contradicting the thumb rule which states:
"Coupon Rate > YTM will lead to Price > Par Value and vice versa"
The Video clearly contradicts that scenario - even when am computing the Price gives me a value less than the PAR of...
In your video under LO 24.3 Example shown, you have mentioned "security" FV is 0, which is normally the case for "Mortgage Security". In case it was a normal security, the FV should have been $ 100,000 right? Please explain.
P.S. Is key rate exposures calculated...
Hi David, Please take a look at the below Question. I have a feeling that I was correct. Duration has no Unit while the Yield should be decreasing with increasing Duration. Only Macaulay Duration has unit. Am I correct on this? Correct me please if am wrong.
Question: Which of the following...
A financial intermediary that has credit risk as the primary risk exposure is a:
C) market maker.
D) financial engineer.
Your answer: C was correct!
A market maker attempts to buy and sell the same option but retains the credit risk on...
An investor owns a stock and believes that the stocks price will remain relatively unchanged for the short term but is bullish in the long term. Which of the following strategies will be the best for this investor?
A) A covered call.
B) A protective put.
C) An at-the-money...
The buyer of a straddle on a stock is most likely to benefit:
A) if the volatility of the underlying assets price decreases.
B) if the position expires worthless.
C) under all conditions because the straddle is guaranteed a risk-free rate of return.
D) if the volatility...
Crashophobia is often attributed to the:
A) U.S. stock market crisis of 1987.
B) Asian currency crisis of 1997.
C) Long-Term Capital Management systemic crisis of 1998.
D) Latin American sovereign debt crisis of 1990.
Your answer: A was correct!
Which of the following methods is NOT used for estimating volatility inputs for the Black-Scholes model?
A) Models of changing volatility.
B) Using long term historical data.
C) Using the most current historical data.
D) Using exponentially weighted historical data...
Which of the following statements regarding the Black-Scholes-Merton option-pricing model is TRUE?
A) The Black-Scholes-Merton option-pricing model is the discrete time equivalent of the binomial option-pricing model.
B) The Black-Scholes-Merton model is superior to the binomial...
If we use four of the inputs into the Black-Scholes-Merton option-pricing model and solve for the asset price volatility that will make the model price equal to the market price of the option, we have found the:
A) historical volatility.
B) market volatility.