117k receiver swaption buy put/sell call 25k value 8 cents what was the last swaps q about? i’m blanking.
wait, got it- asked the fixed rate
is the 8 cents the forward w/ the holding costs??
117K 25000 75 cents (wrong) Payer Swaption (Wrong) Dont remember others
was there another question in this section about alternative methods to accomplish the same goal, with answers c) and d) each side of an interest rate options (collars)?
are these answers all good? i hope so. i’m 5/6 if they are.
wasn’t the other question 4.6% in this set? and what roughly was being answered with the 117k answer, not sure i can remember it.
think the 117k was the expiration of a swaption and discounting it back.
right…i guess i don’t remember it because i am sure i got that one wrong…5/6, which, if i was offered 5/6 in swaps before the exam i would have gladly taken it, so no complaints in this set.
bannisja Wrote: ------------------------------------------------------- > 117k > receiver swaption > buy put/sell call > 25k value > 8 cents > > what was the last swaps q about? i’m blanking. cost of carry should be added
cfaboston28 Wrote: ------------------------------------------------------- > 117K > 25000 > 75 cents (wrong) > Payer Swaption (Wrong) > > Dont remember others 75 cents correct
then i’m 6/6. sweet.
Vovo Viva…75 cents. +1 for me
I put 75 cents too, I’m almost positive that was the correct answer. Cant recreate the question though to prove it though.
it was 8 cents. forward * (1+ RFR) 270/365 + NC
the question with + 75 cents was for backwardation
the 8 cents and 75 cents are different question, no?
why was it buy put, sell call?
yes, the argument for 75 cents is from a different question than Bannisja listed. so no need to debate the two answers, different questions…
when u add cost of carry .05cents… pay ff will be .03 cents… i can’t remember the deatils