ASM Practice Exam 6 # 12

[SamCat]

With discrete dividends, I calculated the pre-paid forward and related volatility (vol. = vol. stock * S/Fp). However, the solution uses the vol. of the stock when calculating d1 and d2. Shouldn't we use the vol. of the prepaid forward?

[Abraham Weishaus]

See the 3rd paragraph of the errata.

[SamCat]

Thanks. Missed it before (was looking for the page number)

[mmamin]

where is the link to the errata for the exam, is it different than the study note errata? please guide.

[mmamin]

i just found it, thanks