Nasty, but in a slightly different way to recent papers. The long question on Finite Difference methods was a shock, and I wasnt well prepared for it at all. Also the question on different risks was a bit of a tricky one to work out what the examiners wanted; I could have written loads, but not sure if I made the points they wanted. Also, the last question, was there the strike price missing for the option ?
It's actually quite hard under exam condition. I really want to know the passing mark for this paper. I didnt have enough time to complete the paper and left most of the wordy risk question blank. For the bond option, I guess the strike price is the forward price of the bond.
yes, strike was missing. I guessed 100 - i.e. option at the money now. long finite diff question was a bit surprising; I think the make or break question might be the 'wordy' risk question; and I can already see some of the comments that'll be in the examiner's report.... Time pressure was tight; esp. with the wordy question and drawing graphs. Why is it that those always are for few marks when they want you to draw relatively accurately and label axes etc?
