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September 2012

Thanks

Thanks, Calum. I get 2% then... Luckily that is what I guessed for Bond A, because I assumed the extra return is to compensate for the extra risk.
But i guessed 0.04 for Bond B.

To be honest, I thought the paper was a bit unfair. I know the file back to front and I worked out 19 old exam papers and all for nothing. Should have spent more time watching series and playing Playstation.
 
Workoholics101 said:
Thanks, Calum. I get 2% then... Luckily that is what I guessed for Bond A, because I assumed the extra return is to compensate for the extra risk.
But i guessed 0.04 for Bond B.

To be honest, I thought the paper was a bit unfair. I know the file back to front and I worked out 19 old exam papers and all for nothing. Should have spent more time watching series and playing Playstation.
Click to expand...

I couldn't have said it better myself. I'm sure it's an FA for me and it's so frustrating after how READY I thought I was after prepping so hard!!!!
 
Yes definitely a problem with the implied volatility. I cant remember exactly what the price of the call was but if you shift the decimal place left you get a more reasonable answer. Still cant believe that it was only 2 marks. And its not even that, most of us probably slaved over it for a good ten minutes before deciding that it wasnt worth those 2 marks. Plus you lose your chain of thought when you realize that you're not getting something as easy as implied volatility and start doubting yourself rather than the question.
 
If you took the quoted option price as being in cents rather than dollars (ie shifting the decimal point by two places), you would have got an implied volatility of exactly 16%, which would have seemed more reasonable than the 436% you get from using the option price in dollars.
 
Wow, I passed??? :eek:
Kind of unfathomable but I'm so taking it and running :)

Thanks to this forum ONCE AGAIN, the help here is great, and to Mike Lewry especially!

Adios CT's!!!!!!!!!! :D

Congrats to everyone else who passed and better luck next time to the others
 
Well done tatos. I'm glad you got through OK :)
Hope your next exams go equally well.
 
Congrats tatos....that's some great news, hard work does what?...lol
 
Failed again. :( Not surprised but still feels horrid.
Despair strikes.
 
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