Start with easier topics like corp finance, equity, alternative investment etc...then move on to relatively tougher topics QM, fixed income, derivatives etc cuz as you'll go near examinations you'll remember them better.
Start with easier topics like corp finance, equity, alternative investment etc…then move on to relatively tougher topics QM, fixed income, derivatives etc cuz as you’ll go near examinations you’ll remember them better.
first of all please try to attach full pic of the write up. solution: see, F(o)T = 111.9640 (should be price). that means F(o)T is overpriced, hence cash and carry arbitrage will take place. we'll buy the share by borrowing 112.08. after 3m, we'll honor our forward contract by selling the bond at 12Read more
first of all please try to attach full pic of the write up. solution:
see, F(o)T = 111.9640 (should be price). that means F(o)T is overpriced, hence cash and carry arbitrage will take place. we’ll buy the share by borrowing 112.08.
after 3m, we’ll honor our forward contract by selling the bond at 125*0.9 = 112.50+0.2 = 112.70. and we’ll repay our borrowing (112.08)^3/12 = 112.1640. therefore arbitrage profit today (i.e. prior to 3m) is the pv of 112.70-112.1640 = 0.5360
see, in conclusion 1, if there is tremendous heat in the region from where we export our grains rises then that'll result in crop damage...which will then lead to short supply of grains in the market and thus higher and not lower prices. with regard to conclusion 2, if tariffs are imposed then the pRead more
see, in conclusion 1, if there is tremendous heat in the region from where we export our grains rises then that’ll result in crop damage…which will then lead to short supply of grains in the market and thus higher and not lower prices.
with regard to conclusion 2, if tariffs are imposed then the prices will rise in the international markets and not domestic (arguable)…as foreigners will now have to pay higher prices due to imposition of tariffs.
and in conclusion 3, freezing technology is improved and hence the meat that we are storing will last longer than usual…so its correct.
But in the statement its also mentioned that the spot rates evolve as per implied by forwards rates...how is this portion correct? Shouldn't it be current spot rates?
But in the statement its also mentioned that the spot rates evolve as per implied by forwards rates…how is this portion correct? Shouldn’t it be current spot rates?
CFA Level 2 | May 2023 – Study Sequence
Start with easier topics like corp finance, equity, alternative investment etc...then move on to relatively tougher topics QM, fixed income, derivatives etc cuz as you'll go near examinations you'll remember them better.
Start with easier topics like corp finance, equity, alternative investment etc…then move on to relatively tougher topics QM, fixed income, derivatives etc cuz as you’ll go near examinations you’ll remember them better.
See lessCFA mock question
No, its A.
No, its A.
See lesscfa mock question
Yes. kindly explain. also explain option B and C too
Yes. kindly explain. also explain option B and C too
See lessBond Futures
first of all please try to attach full pic of the write up. solution: see, F(o)T = 111.9640 (should be price). that means F(o)T is overpriced, hence cash and carry arbitrage will take place. we'll buy the share by borrowing 112.08. after 3m, we'll honor our forward contract by selling the bond at 12Read more
first of all please try to attach full pic of the write up. solution:
See lesssee, F(o)T = 111.9640 (should be price). that means F(o)T is overpriced, hence cash and carry arbitrage will take place. we’ll buy the share by borrowing 112.08.
after 3m, we’ll honor our forward contract by selling the bond at 125*0.9 = 112.50+0.2 = 112.70. and we’ll repay our borrowing (112.08)^3/12 = 112.1640. therefore arbitrage profit today (i.e. prior to 3m) is the pv of 112.70-112.1640 = 0.5360
Delta and gamma
attached below
attached below
See lessDelta and gamma
Interest Rate Tree
you just have to take the help of spot rates using the table when you'll do pv of expected loss
you just have to take the help of spot rates using the table when you’ll do pv of expected loss
See lessCommodity
see, in conclusion 1, if there is tremendous heat in the region from where we export our grains rises then that'll result in crop damage...which will then lead to short supply of grains in the market and thus higher and not lower prices. with regard to conclusion 2, if tariffs are imposed then the pRead more
see, in conclusion 1, if there is tremendous heat in the region from where we export our grains rises then that’ll result in crop damage…which will then lead to short supply of grains in the market and thus higher and not lower prices.
See lesswith regard to conclusion 2, if tariffs are imposed then the prices will rise in the international markets and not domestic (arguable)…as foreigners will now have to pay higher prices due to imposition of tariffs.
and in conclusion 3, freezing technology is improved and hence the meat that we are storing will last longer than usual…so its correct.
Riding the yield curve
But in the statement its also mentioned that the spot rates evolve as per implied by forwards rates...how is this portion correct? Shouldn't it be current spot rates?
But in the statement its also mentioned that the spot rates evolve as per implied by forwards rates…how is this portion correct? Shouldn’t it be current spot rates?
See lessRiding the yield curve
Yes. So according to this the language the scenario 3 above in the picture attached is incorrect right? Institute is treating it as correct.
Yes. So according to this the language the scenario 3 above in the picture attached is incorrect right? Institute is treating it as correct.
See less