If in the exam we are required to calculate the option price but not given the information whether it is European or American, what do we do? treat it as European?
or in other word, if two period binomial, in the calculation process, American is exercisable in both periods, while European is only exercisable in the second period, so the calculation should be different
They’ll tell you whether it’s American or European.
at leaset in the mock they dont, see Moyle case Q1
I don’t have access to the mock, which, I’m given to understand, wasn’t written by CFA Institute.
On the real exam, they’ll tell you. The point of the exam is not to see if you’re a good guesser.
Thank you, since the ethics do not prohibit expressing personal opinions on CFA, i would say those mocks are to some degree not well written:)