CFAI III 2016 AM Mock Multiple Choice -- Application of Derivatives - Watanabe

I am specifically referring to the ‘Application of Derivatives - Watanabe’ vignette from the CFAI III 2016 AM Mock Multiple Choice…

Why do you use the cash duration of .25 in question #31, but not in question #32? I would think the cash duration would be used in both calculations…


Inconsistencies like this arise in practice and mock exams, not in the real exam. Somebody blew it.

Use zero for the duration of cash unless they tell you otherwise.

Thank you, Magician.

You’re welcome.