Hi - I struggled with understanding the derivative strategy in question 3(i) of the mock paper under timed conditions. Are there any other questions similar to this that I can practice?
Hi, It is a tricky question, but like many questions in SA7, they can be quite unique. Its hard to find a question in past exams that matches up closely with this one, but there are many that involve a hedging strategy of some sort where you are asked to "discuss the risks of the strategy", including repo and swap hedging strategies, hedging strategies for specific liabilities, or even structured products.
Thanks Colin - I've not found on as difficult as this when I went through the past papers so wondering if there was anything equivalent. Maybe it's a good sign there isn't!