I hope its because all of you did well, but me, this is one of the areas i screwed up in (it was just a blur!) im talking of course about that long scenario about SWAPS… I remember i choose - 10,000 for one of the answers… thats alL!
I thought the derivatives was VERY easy. It was basically the simple stuff that I knew they’d ask (how to calculate a swap rate, forward rate, etc.), and none of the really tough stuff (valuing a currency swap, etc.). People may not be talking about it because it was relatively easy.
ontheuptick Wrote: ------------------------------------------------------- > I thought the derivatives was VERY easy. It was > basically the simple stuff that I knew they’d ask > (how to calculate a swap rate, forward rate, > etc.), and none of the really tough stuff (valuing > a currency swap, etc.). > > People may not be talking about it because it was > relatively easy. I’m glad it was easy for you uptick, but im pretty sure i wasn’t the only one complaining about the SWAP Qs after the exam…
i think i scored 12/12 - only question i’m not sure about was the LIBOR question - deriv was very easy this year
I think interest rates were going down, what would you have bought? I forgot what the answers were.
I truthully can’t remember derivatives that well. I do remember having a tough time on the PM section because I realized I was running out of steam and when I looked at the last section and saw those absurd minimum variance questions, I almost ripped up my test.
Seb25 and ontheuptick i left the swaps vignette for the last with about 7 minutes to go, hardly had time as my nerves took over please verify the following answers, 1) 4.6% 2) buy fixed payer swaption 3) C 4) C 5) C 6) C Honestly I’ll live with just 2 correct in this one, since i just clicked on C for the last four without even reading the question Please help guys
i don’t think it was buy fixed payer swaption…
It was buy receiver swaption. I don’t remember the others off the top of my head. If you gave me choices, I could tell you, but I don’t know them flat off.
cfa_b’more Wrote: ------------------------------------------------------- > Seb25 and ontheuptick > > i left the swaps vignette for the last with about > 7 minutes to go, hardly had time as my nerves took > over > > please verify the following answers, > > 1) 4.6% > 2) buy fixed payer swaption > 3) C > 4) C > 5) C > 6) C > > Honestly I’ll live with just 2 correct in this > one, since i just clicked on C for the last four > without even reading the question > > Please help guys 4.6 - yes buy rec swaption
ontheuptick Wrote: ------------------------------------------------------- > It was buy receiver swaption. > > I don’t remember the others off the top of my > head. If you gave me choices, I could tell you, > but I don’t know them flat off. Yep that was it. 4.6% seems correct, and I believe the payoff was -10,000. well it seems not too bad!
buy payer swap meant you pay fixed and received floating. Interest rates were declining. Do you want that?
Thanks a lot guys, I think -10000 was choice C, so I guess Im not committing suicide