Hi,
I'm looking at September 2020, paper A question 10 which is an algebraic profit test solving for a premium. My approach to this was to treat the question as a "regular" profit test using a notional premium and perform the calcs in Excel. Once all set up, I used the goalseek functionality to find the premium that gave a total EPV of 0, which matches the final answer in the solutions.
The solutions take a more traditional approach and set out equations in terms of P which are then solved, and there's a fair few marks for solving these equations. Would I still receive full credit for my approach? I've shown working where appropriate and added some narrative about exactly what I did using Goalseek, but obviously there's not really a way to document this any more clearly.
Thanks
I'm looking at September 2020, paper A question 10 which is an algebraic profit test solving for a premium. My approach to this was to treat the question as a "regular" profit test using a notional premium and perform the calcs in Excel. Once all set up, I used the goalseek functionality to find the premium that gave a total EPV of 0, which matches the final answer in the solutions.
The solutions take a more traditional approach and set out equations in terms of P which are then solved, and there's a fair few marks for solving these equations. Would I still receive full credit for my approach? I've shown working where appropriate and added some narrative about exactly what I did using Goalseek, but obviously there's not really a way to document this any more clearly.
Thanks