Defective

[Math]

Had another thought. What did people think about the theory question regarding puts, calls, time to expiry, and price? Answers were I, II, etc.

[mred]

Originally Posted by Gandalf

I could see where knowing someone's answers on a pencil-and-paper test could help someone else in a different time zone. For a computer-based test, why would it matter if you knew what letter you chose for question 1, or even for questions 1-30?

You could store actual answers (not just ABCDE) and give them to somebody. If they memorized those numbers, it might be a slight advantage for them.

I'd think they could gain a greater advantage spending that time memorizing something legitimate, like formulas.

[Sma4186]

Originally Posted by Math

Had another thought. What did people think about the theory question regarding puts, calls, time to expiry, and price? Answers were I, II, etc.

Is this the one where you're told that a put option is sold and asked what will happen if a call option is also sold?

[Sma4186]

Anyone get these two questions?

A question where you're given futures price and other relevant information and asked to find volatility.

Question where you're given the price of a put option and told that early exercise on an American call option is optimal. Then you're given three numbers and asked which ones are possible values for the present value of dividends.

[MayanActuary]

Originally Posted by Sma4186

Anyone get these two questions?

A question where you're given futures price and other relevant information and asked to find volatility.

Question where you're given the price of a put option and told that early exercise on an American call option is optimal. Then you're given three numbers and asked which ones are possible values for the present value of dividends.

1- nope.
2- yes, sending pm.

[PKG]

Originally Posted by MayanActuary

1- nope.
2- yes, sending pm.

I too had this question and think I figured it out but am not 100%.

[Minyu]

Originally Posted by arhong

Anyone got the following questions:

1. Given different strike, call and put price, ask for bull or bear?

2. Given yield curve, duration hedge, ask for if yield increase or decrease? (This is the one I could not get a right answer)

2. Is this the one where the yield curve is flat, and the question had something to do with the yield curve increasing/decreasing? If yes, I recall getting an exact answer...

[mochishans]

Originally Posted by Sma4186

Anyone get these two questions?

A question where you're given futures price and other relevant information and asked to find volatility.

Question where you're given the price of a put option and told that early exercise on an American call option is optimal. Then you're given three numbers and asked which ones are possible values for the present value of dividends.

Got these too, could not find answer of either of them.

God I feel like I am going to fail again!

[ThanksTom]

Just returned from my two week bender after MFE! I had the Benz problem as well as the forward tree where you calculate K in a one year tree and find the price of the option in a two year tree. Got an answer which was right in between two of the choices for both.

[LargeNumbers]

I had the forward option problem and I couldn't get an exact answer for that no matter what I did. I did have that find 'a' to make the function constant. That one was simple but finding the answer took more time than it should've been until I had one of those aha! moments.