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Recent Content by John Potter

  1. John Potter
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    sept2007 Q7

    I think both of these points are points of possible ambiguity, as has been witnessed in past papers. My advice would be to do something sensible...
    Post by: John Potter, Apr 9, 2024 in forum: CM2
  2. John Potter
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    September 2016 Question 8 part v

    Yes, that sounds sensible but careful not to fixate on mu being a thing. I don't think you are but, just in case, recall this thread......
    Post by: John Potter, Apr 8, 2024 in forum: CM2
  3. John Potter
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    sept2007 Q7

    Can you be more specific? Your post is not a million miles away from "Please teach me the course material from scratch" What have you done so far...
    Post by: John Potter, Apr 8, 2024 in forum: CM2
  4. John Potter
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    September 2022 - Q1

    Yes, this is a nice summary
    Post by: John Potter, Apr 8, 2024 in forum: CM2
  5. John Potter
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    September 2022 - Q1

    This is the kind of problem you can get if you try to apply a set equation as THE method for doing something, when it’s really the logic behind...
    Post by: John Potter, Apr 8, 2024 in forum: CM2
  6. John Potter
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    Forwards Pricing Decisions

    There are ALWAYS two portfolios with these. Portfolio A is always... a) one long forward and b) cash Ke^-rT This is guaranteed to deliver one...
    Post by: John Potter, Apr 6, 2024 in forum: CM2
  7. John Potter
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    ASET and Tutorial Solution questions

    Hi Ray, Can you please post these questions separately? Cheers, John
    Post by: John Potter, Apr 6, 2024 in forum: CM2
  8. John Potter
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    April 2015 Qu 8 - Lagranigan

    Yes, this is all fine. You will get different answers depending on the units you use. In fact, because the Lagrangian function is a mixture of...
    Post by: John Potter, Apr 6, 2024 in forum: CM2
  9. John Potter
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    September 2016 Question 8 part v

    I think your approach is going to work, you just need to adjust your drifts. mu = r, good but then this drift needs adjusting to r - 0.5*sigma^2...
    Post by: John Potter, Apr 6, 2024 in forum: CM2
  10. John Potter
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    S15 Q5(iii)(b) v. A15 Q2(iii)

    The interpretation of S15 Q5(iii)(b) that is consistent with the Course Notes is to think that there’s a 95% chance that the value of the...
    Post by: John Potter, Apr 6, 2024 in forum: CM2
  11. John Potter
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    using Taylors series instead of Ito's Lemma

    The situation is entirely analogous to being asked to solve a quadratic by using THE quadratic formula (an ill defined question in itself if we...
    Post by: John Potter, Apr 6, 2024 in forum: CM2
  12. John Potter
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    CM2A September 2022 Q9

    It's often the case that our ASET solutions provide the necessary explanation and detail that is sometimes missing from the Examiners' solutions....
    Post by: John Potter, Mar 30, 2024 in forum: CM2
  13. John Potter
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    answering black scholes with payoff diagrams

    Should be exact. I just checked in Excel and all 3 portfolios have a value of 1.06215001. You need to discount the cash and you've got the signs...
    Post by: John Potter, Mar 30, 2024 in forum: CM2
  14. John Potter
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    answering black scholes with payoff diagrams

    All of this sounds extremely good. Particularly pleased to hear about the proactiveness in your investigative approach - it's how we learn maths,...
    Post by: John Potter, Mar 28, 2024 in forum: CM2
  15. John Potter
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    answering black scholes with payoff diagrams

    I've corrected the mistake for adding the underlying to achieve a slope with puts
    Post by: John Potter, Mar 28, 2024 in forum: CM2