Anyone recall this one? There were multiple clients and each one wanted something done to their current portfolio. But all portfolios were in CHF currency, and all the futures prices were in . I thought that was sneaky, especially when the table with the futures was on 2nd page and you had to flip back and forth and could easily miss this. So did you just have to use the spot exchange to convert each client's portfolio to and then use the appropriate formula? Seemed kind of easy…
I converted to CHF as the company was swiss… which means I converted all the futures contract that were in $ to CHF
was easy but i bet a lot of ppl didnt notice you had to convert the currency
this sucked. for some reason i couldn’t find the exchange rate.
Bottom line of the information table had the exchange rate.
I hope you guys are kidding. Was there really a difference in currency?
yes - no joke
I converted CHF to USD first, the used the US futures price to determine how many contracts to short.
I think that makes it official for me – This was 3 questions right – Im done. Passed 1 and 2 with no problem. I found 3 to be relatively easy and it looks like I fell into everyone of their traps. I am now getting off AF until results are out – i cant take it.
ya i did it first, filled in the bubbles, then saw an exchange rate and said “wait a minute, this guy was swiss”, double checked and then go it right it was a sneaky question
NJLVLIII Wrote: ------------------------------------------------------- > I think that makes it official for me – This was > 3 questions right – Im done. Passed 1 and 2 with > no problem. I found 3 to be relatively easy and > it looks like I fell into everyone of their traps. > I am now getting off AF until results are out – > i cant take it. Dunno about US version but for 8080, only first two needed the currency conversion, not three
With all due respect to the CFA institute, How in the world does adding a wrinkle like that to the question test your knowledge of the material? So some people are going to fail because they didnt see that they were in 2 different curriencies? How is that testing their knowledge? Thats testing their concentration. I am one very unhappy child right now.
I converted CHF to USD first, the used the US futures price to determine how many contracts to short. I think if you used CHF value with CHF futures price or USD value with USD futures price than you should of got same number of contracts. As long as both were in the same currency though, that is why one was USD and one was CHF. I did the US$ conversion and my answer was there as one of the possible answers
NJLVLIII Wrote: ------------------------------------------------------- > With all due respect to the CFA institute, How in > the world does adding a wrinkle like that to the > question test your knowledge of the material? So > some people are going to fail because they didnt > see that they were in 2 different curriencies? > How is that testing their knowledge? Thats > testing their concentration. I am one very > unhappy child right now. just another step my friend to try to throw off the calculation - i think it only impacted 2 questions
Jscott24 Wrote: ------------------------------------------------------- > NJLVLIII Wrote: > -------------------------------------------------- > ----- > > With all due respect to the CFA institute, How > in > > the world does adding a wrinkle like that to > the > > question test your knowledge of the material? > So > > some people are going to fail because they > didnt > > see that they were in 2 different curriencies? > > How is that testing their knowledge? Thats > > testing their concentration. I am one very > > unhappy child right now. > > > just another step my friend to try to throw off > the calculation - i think it only impacted 2 > questions You are right – I caught most of the distractors the first 2 years and now it seems like I fell for each one this year. Classic case of overconfidence – I knew the material – Do the calculation – its there as an answer and I take it without Looking at the other answers. Huge lesson for next year – Go through every answer in multiple choice and see why they are there.
to be honest, i noticed the exchange issue and i was looking for the exchange rate but i couldn’t find it…really, that’s so frustrated, it’s not like i missed it… i am in new york
i freaked out about this for like 5 mins till i found it… dirty trick
IH8FSA I did it the same way as you did. I had no problem on any of them and my calculations were all coming up near exact. However, was confused on the one with the 90% Equity and 10% debt that they wanted you to make 50/50 equity/debt and buy treasuries futures. What was the calculation for that one?
558 contracts?
IH8FSA I did it the same way as you did. I had no problem on any of them and my calculations were all coming up near exact. However, was confused on the one with the 90% Equity and 10% debt that they wanted you to make 50/50 equity/debt and buy treasuries futures. What was the calculation for that one? The question asked about cash to bonds, which means had to focus on the bond side since “to cash” would have focused on the equity side since we were decreasing equities and increasing fixed income" 0-1/.98 * (was 10% to 50%) ( futures price) at first was doing that (theld) question, but that wasnt rright something like that