Someone pls tell me that the put and call option in the int rate option ques (the 2nd last question in PM) is actually not in the money, therefore payoff should be 0. Reason being: 1) LIBOR is above the put option strike rate in first ques in the case 2) In the 3rd ques, since they BUY call options and int rate is below the strike rate Anyone got the same?
what question are you talking about?? don’t remember this at all?
me neither.
Guys - can you tell me where you took the test? There is also a thread on swap duration, which i dont recall answering
haha… are the papers different for Asia and the US? i m taking this from South East Asia
same here. do you recognise this swap duration question in am.
same here. do you recognise this swap duration question in pm.
Looks likes the exams on 7th and 8th were different atleast a few questions.
what about the self dealing… do you remember answering that?
I remember self dealing but have been told they were looking for the “least likely”
PJStyles Wrote: ------------------------------------------------------- > I remember self dealing but have been told they > were looking for the “least likely” i screwed this one up. wasnt 100% sure what was it. I will give this question away as one of my 10 wrong question allowance
PJ Styles - my point is there was no question that remotely dealt with self dealing or any of the corp. gov. stuff…i mean this for those who took the test in asia.
PJStyles Wrote: ------------------------------------------------------- > I remember self dealing but have been told they > were looking for the “least likely” Really???
Ozzy, you are right, in Asia we didnt have the self-dealing question and also the swap one.
pach Wrote: ------------------------------------------------------- > Ozzy, you are right, in Asia we didnt have the > self-dealing question and also the swap one. could this mean they are test questions?
i hope atleast the am are the same…
now looks like even am is different…in q1 i don’t recall any mention of mortgage payts…anyone wants to 2nd that.
i do Ozzy05 , took it in India
Precursor, payoff was 0. The LIBOR was 5.2 at the time of option expiration. The put strike was 5.1 and the call strike was 5.28, so the LIBOR was lying within the collar, hence 0 payoff for both parties.
Ozzy05, I pray to God we are right, cuz I too read that they rented the house. When I went through the thread Q1 in AM, I fell into abyss as Q1 was one of the few I was able to attempt fully. I missed the last 2 Qs completely, and one or more section from 3-4 other questions, so I’m already hanging by the thread. I thought it was only the university payment and Barry’s father support which was in return objective in Q1. But maybe I didn’t read about the mortgage payments. Can someone pay for mortgage if (s)he is living in rented place? Edit: My form was 8080. Anything to do with that?