I have started reading the Basel chapters yesterday and i have to admit they are proving to be very boring and annoying. I havent even finished the first 3 chapters and i'm really struggling with them. I mean the whole operational risk topic is a bit too much but those chapters are the worst so...
in the designated hull chapter, we have the following explanation :
it can be optimal to execute an early
exercise on an American put. In general, we can say that for an American put, the early exercise
becomes more attractive as:
Stock price (S0) increases,
Risk-free (r) rate increases...
In reference to BT practice questions of chapter Risk Mgt failures (2010), page 15 Q1 :
According to Stulz, each of the following can especially and directly contribute to risk mis-measurement except for : the answer is Unknow risks
and on page 17, Q2 : According to Stulz which of the...
In the 2011 PQ booklet for Tuckman chapter 1 Discount factors, exercise 11.4 which is about calculating the face amounts of a replicating portfolio related to an overvalued treasury note... Can you please explain to me how we're doing this ?
As the title indicates, I was hoping someone would tell me what's the hardest and easiest topics in Part I? This may sound like a silly question but the reason im asking it because i want to organise my time by depending on this issue