Hard questions for the last days?

CFA Level III
#1

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?

Thanks!

#2

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.

#3

Arbitrage profit of a box spread…nice!

#4

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

#5

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 ?

EDIT:

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

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

#6

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.