Hard questions for the last days?

I’ve finished reviewing the old A.Ms and Mocks. I’ve done a lot of EOC/BB, though not everything (have lost track of what questions I did and which I left out).

So I thought to do some of the more difficult questions to be prepared for the worst and ask around what you guys think. EFC has 3 that I found quite nice (although the last one wasn’t that hard): http://news.efinancialcareers.com/uk-en/173925/seven-hardest-cfa-questions-expert-tips-answer/

Do you have any recommendations which EOC/BB/other questions might be worth doing and would be the worst that could be asked on the exam?


Good link, I’d be interested in more like that too. Those were challenging. I got 1 out of 3 but I believe I would have earned partial credit on the other two because I did everything correct up to the last step where I made dumb mistakes on both.

Unfortunately, I don’t think the test will be that mathematical, I’m more afraid of questions like: Name 3 differences between ETFs and index mutual funds. Or What are the advantages and disadvantages of centralized and decentralized risk management.

Arbitrage profit of a box spread…nice!

I’m afraid that will happen. So it’s back to the flashcards. Hate memorizing stuff…

Can anyone tell me why my box spread payoff is different from the authors? I think i should get the same result

Box spread “value” = 9.397

Theoretical value of spread at expiration = 10 / e^ .04*.5 = ~9.80

= approxmiately .40 which is a penny off from their example… Shouldn’t this calculate the same result ?


FML I calcualted the PV of the payoff, needed the FV

my answer * e^.5 *.04 = .4131

For the morning session I would use annualized returns but not continuously compounded (no e^). At least I haven’t seen it that way in Level III. But should lead to very similar results, in PM it shouldn’t make any difference.