I read this banner in the GARP website in the 'After the Exam' section.
Could you please clarify or correct me if the results are already released and we are not able to see the same.
The phrase Exam results Released is misleading.
I am writing to you this note, to thank you for the wonderful prep questions and notes. The exam was simply as predicted. The numerical problems were replicas from your practice questions.
This is due to the indepth knowledge and effort that you have put in to frame these...
On Page 29, Index futures contract - example to reduce the beta from 1.5 to 1.2, the answer should be 9.67 contracts and not 97 contracts. Could you please clarify. The problem details are - Current Beta - 1.5
Target Beta - 1.2
Present Portoflio Value = 10m
Index contract price , 1 contract...
Current Position - Long Call; Position Delta +ve; Delta Neutralising trx - short stock
Current Position - Short Call; Position delta -ve; Delta Neutralising trx - Long stock
Current Position - Long Put; Position Delta -ve; Delta Neutralising trx - Long stock
Current Position - Short Put...
I came across this assignment problem in Hull. I tried to solve it but would like to get a correct answer to this problem. Could you please help. I have ignored the vega neutralising requirement from the original question as it is low testability.
The answer I got - Gamma Neutralising trade...
In the mock Exam question number - 10 - the solution for R^2 is mentioned as
True: Beta(P w.r.t. B) = correlation*vol(P)/vol(B), such that correlation = beta(P,B)*vol(B)/vol(P) and R^2 = Beta^2*vol(B)^2/vol(P)^2.
In this case, R^2 = 0.8650*1.4090%^2/1.3240%^2 = 0.8474
In the substitution...
What is a quarterly rate of 8.00% converted into its bond-equivalent (semi-annual) rate?
Answer: we can take the long way and find the continuous equivalent, which is equal to LN(1.02)*4 = 7.92105%. Then convert that to the semi-annual rate, which is equal to [EXP(7.92105%/2) – 1]*2 = 8.080%...