I literally studied 10 hours today

In that time I did two mocks

Mornin and afternoon

I did well in them too

There was a really weird q on bull spreads on one of them. The mock was from the Boston CFA society. I wish I could post the question but there was a lot of copywright stuff.

There was another weird q that I just need to ask about,

The q asked to explain who faces the credit exposure.

The situation was a bank who shorted the dollar against the mexican peso and the forward rate was bigger than the spot rate.

The answer key stated that the forward position had postive value to the bank so the credit risk is on the counterparty.

Can someone explain what the credit risk is on the counterparty means.

I thought the bank faced the credit exposure since the forward contract had positive value to the bank.

The way I understand credit risk… It is referring to who is bearing the credit risk. If the bank is on the losing side of a bet, the other side of the transaction (the bank’s counter party) is due a payment from the bank, hence the counter party is facing credit risk from the bank. I do not see how the bank could be on the winning side of the transaction and not be subject to credit risk from the counter party. I’m sure that is not helpful at all. Your logic seems correct to me.

I can’t exceed 8 hours of study a day. That’s pure studying, so any breaks in between won’t count.

Same here. I’ve attempted it, but end up zoning out, browsing the web on my phone or end up reading the same paragraph over and over until I realize that 15 minutes have passed by. If you can get a productive 10 hours a day that is pretty awesome. I’m going to still try to stick it out this weekend, just need to build up the motivation and discipline.

Yea, once you realize you’re reading the words, or looking at the formulas, but literally half a minute later, you blank out on what you just tried to read or memorize… there’s no point in counting that time as studying anymore.





10 hours is insane. It’s funny how a 10 hour day of work is nothing compared to 10 hours of studying. Studying is so much harder. Only a few hours per day this week for me. 6-8 per day M-Thursday next week. Then I’m done whether I re-take it (for a third time) next year or not.