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    Is CVA a testable topic in 2013

    Hi David, I found an extensive discussion in your 2012 Credit Risk 6.b video on the topic of CVA. This video has not been updated in the 2013 Part 2 package, so I assume it is still relevant. However, I found that there is hardly any mention of CVA in the aims for part 2. All I found was this...
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    Black Scholes Merton and treatment of Dividend

    Hello, When a Dividend is given as $ amount how does that impact the D1 calculation? Do you use the ln(S0*De^-rt/k) amount instead of ln(S0/k)? When a dividend is give as % amount how does that impact the D1 calcuation? Do you subtract dividend from r as (r-q)+sigma^2/2) Thanks.
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    anyone taking FRM in San Francisco in May

    What is the parking situation like at USF? I was thinking of driving to the exam rather than take public transit.
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    Option strategies question

    12.11.6 You are bearish on the market (you think the market will go down) so you decide to use the following options, all with the same maturity: buy a put with K = $49 for $8, sell two puts with K = $40 for $5 each, and buying one put where K = $49 for $3. If at maturity the underlying trades...
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    One Step binomial problem from Hull

    19.12.1 The current price of a stock is $10, and it is known that at the end of three (3) months the stock's price will be either $13 or $7. The risk-free rate is 4% per annum. What is the implied no-arbitrage price of a three-month (T = 0.25) European call option on the stock with a strike...
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    Certainty Equivalent formula

    Hello David, In the study notes on Page 11, the formula for CE is given as CE[CF(n)] = E[CF(n)] * [1+r(WACC)]^n / [1+r(f)]^n however the computation is showing $356 = $453*(1+3.50%)^5/(1+8.616%)^5 Where Rf = 3.50% and WACC = 8.616%
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    Q6.3 Option Delta

    6.3. The spot EUR/USD exchange rate is $1.30 (i.e., USD 1.30 per 1 EUR) with a volatility of 30% per annum. The USD riskless rate is 4% per annum and the EUR riskless rate is 3% per annum. What is the delta of a one-year call option on the Euro with a strike price of EUR/USD $1.36? a) 0.4980 b)...
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    bionicturtle videos on youtube

    Hi, I recently purchased your training program with the intention of giving the FRM exam in May 2013. I noticed that there are a lot of videos posted by bionic turtle on youtube. However, these are not in any organized fashion. Even if you went through the play lists there seem to be missing...