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FRM MAY PART 1 2013 Feedback

#41
If you are given question on finance sphere you need some time to think about different relationships. Like, if interest rates or forward curve goes up what will happen. In garp exam if you know these types of relationship directly then you are done otherwise there is not any time for thinking.
 
#42
While the quantitative part seemed to be fairly straightforward (due to BT's help needless to say), I was surprised with a large number of qualitative questions.. with quite ambiguous options.. i wish there'd been more calculations to be honest
I struggled with some quant questions too, but I agree with you. There were at least 25 or more qualitative questions on the exam. I went in underprepared for that number of questions. I was surprised on the amount of focus on data quality. There were at least 2-3 questions.
 
#46
Does anyone remember how they answered the probabilty question Bond A and Bond B prob of default is 4%. If Bond A defaults 80% prob that Bond B will default. I think choices were .90, .94, .96 and one in 80s.
 
#50
There was a question about portfolio volatility where individual volatilities of two instruments were 13.4 and 11.1 or something along those lines.
 
#53
14. I don't remember Expected Shortfall question. I also read option strategies a lot but there was only one and even I don't know whether I wrote it right. Investor expects volatility could decrease. which strategy to choose ? Straddle, Short butterly, Short calendar, short bull or bear . Question was worded that manager's fund would experience large losses from drop in market volatility. So, I choose Butterfly (I think it was stated as long the wings, short the middle) which is a bet on lower volatility.

Is it long a butterfly?
 
#58
14. I don't remember Expected Shortfall question. I also read option strategies a lot but there was only one and even I don't know whether I wrote it right. Investor expects volatility could decrease. which strategy to choose ? Straddle, Short butterly, Short calendar, short bull or bear . Question was worded that manager's fund would experience large losses from drop in market volatility. So, I choose Butterfly (I think it was stated as long the wings, short the middle) which is a bet on lower volatility.

Is it long a butterfly?

No, I think it was short butterfly. Straddle, Short butterfly, Short calendar, then short bull or bear spread (can't remember exactly last one). I choose last one. Short bull or bear spread. It was bull or bear not both
 
#60
What was your answer for put call-parity. Spot = 50, strike 40. It should be american put option and american call option. Question asked to find lower and upper bound of difference of put and call option
 
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