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    Gap options versus barrier options.

    Hi guys Can someone please clarify the difference between a barrier options and a gap option exactly? A gap is an option that gets exercised at 1 strike but its payoff is based on another strike. This sounds very similar to a barrier option which becomes activated on 1 barrier but its payoff...
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    Long hedge versus short hedge

    Posting this here. About long and short hedges. https://www.bionicturtle.com/forum/threads/p1-t3-710-long-and-short-hedges-hull-chapter-3.10546/#post-77932 As per this thread short hedge means long basis which means that if the basis strengthens we gain. I.e. the logic is that b/c i go long the...
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    EOC hull questions versus bionic turtle

    Hi guys, I wanted to ask if I can skip the Hull eoc questions altogether and just do the bionic turtle ones? I am not sure there's enough of time to do everything along with the mock exams. What do you guys recommend. Is this advisable?
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    Bodie EOC Q11

    Didn't see a thread link for this q on the notes and couldn't find one so starting a thread on Q1 in question set for Bodie. The answer for this in terms of expected return is 15%. The explanation is b/c "According to the equation for the return on the stock, the actually expected return on...
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    Var formula for part 1 exam

    Hi all, can someone provide me with the var formula we need to know for the part 1 exam?
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    FAQ Before Exam Can I purchase only the practice questions?

    hI guys- is there a package for just practice questions?
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    Vol swaps versus variance swaps

    H guys, Does anyone know why for variance swaps we can hedge them with options but for volatility we cannot hedge them with options? I understand delta hedging versus static replication so I don't need an explanation of that. Vol swaps expose you to sheer volatility of the asset rather than its...
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    Bond duration and coupons

    Hi guys, My question is why does duration go down for lower coupon bonds. I have read many many threads on this already on the internet and bionic turtle. The reason I still post this question is b/c I understand the question from the macaulay's duration point of view which is that you get...
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    Explain how to use stock index futures to lock in the benefit of a stock selection

    Hi guys, Why would I short future if my stocks outperform to lock in the profit? I don't quite understand this concept. Doesnt short futures act as a hedge to mitigate against stock price decreases? how does it lock in the profits of stock prices going up? I don't quite get this. I tried...