Hi, Do you expect this in the exam? I mean, delta hedge adjustments, calculate how number of underlying shares changes, and how those shares that you must buy/sell increases or decreases the bond balance… It does not seem very complicated, but it takes a lot of time (at least for me)… According to schweser, “be able to determine the number of shares to purchase to establish the delta and then adjust…”. Do you know if actually this has ever been in any exam? Not the initial delta (easy), but subsequent changes and adjustments to bond balance, calculation that you are effectively earning the risk free rate each day on your overall position, etc thx
Hopefully, I will see it on the exam. With gazillions pages to memorize, doing any computing during exam will be quite welcome. These should be easy points for you. Look at last year’s results. People bombed in the morning, only be rescued by the afternoon session on derivatives etc.
agree on that, is that I find some level III calculations really long… I am afraid of not having time to do everything in the afternoon session… thx abacus
You should pray for this to be on the exam.