Question #1 of the hedge fund section… they ask you to calculate the delta. Maybe I am having a major brain freeze… but I follow the formula (Convertible up - Convertible down ) / (parity up - parity down) and i am NOT getting their answer. Anyone care to jump in?
You should put the question in your post since people who have already passed the exam will not have easy access to these materials to provide help.
change in conv/change in parity 132-99 / 109-57 = 0.64
ATH I liked your signature
LOL I did (132.63 - 99.25) / ( 109.55 - 99.25) about 4 times… WOW. Cannot do that on the exam. Its
The answer is wrong in the book…it is not the only one! I did that question maybe 100x and I know the answer is .06 whatever, I looked at it about 10x before I walked in the exam this morning.
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