Options Futures and Other Derivatives by Hull

Just to share with others that most of the questions in the old past papers were taken from this book, skimming through the chapters high level and noting the staff you find interesting or insightful seems to have been a good mark earner (then).

 

I surely don't have a lot of time to list everything, since I am on the final lap of my prep and may do better going over the core-reading. However most of the examiners' comments signalled that they had read the book and actually were inspired by it;-

1) The role of speculators, arbitrageurs and hedgers has been asked
2) There was a Sep 2008 question asking for the process for calculating credit ratings (solution refers to CDS spread, Bond prices which is in the book)
3) There was another Sep2008 question asking for other things that a prepayment function should consider the book makes explicit mention about this
4) The stripped MBS (IO and PO) comment as a away of managing prepayment risk - Business Snapshot 31.1 (8th Edition)
5) Some comments about skin in the game for companies using SPV
6) The derivation of the hedge ratio qualitative argument about regression of delta S against delta F in the core-reading comes from this book - technical derivation was asked but was home play if you had done ST6

Clearly the book is not the only source of these but having gone through it in ST6 and now again even though on a high level increases the chance of mentioning similar points with the examiners

As you can see my answer to you is not that helpful, there are more but I don't have the time. Will try posting after the exam, if I have the energy!

 

Thanks Colin, will do better even with a modicum of Luck!