Interest rate option expiring in 90 days with a strike 4.8 Schweser assumes that current LIBOR rate is 4.8. WHY? Can’t strike be ANY rate? Come on :-/
^I fu*ked up on that one too!! Bad question, bad!!!
Dude, this is like 5th question in PM 3 i find that is COMPLETELY OUT OF WACK… and then people blame me for cursing schweser out. Good thing i know concepts COLD so i dont get sway by their lousy solutions but other people make take their crap at face value :-/
You might want to check out the errata (for schweser and cfai) This omission was noted back in April… Exam 3PM, question 18 Page: 180 - Omission Current 180 day LIBOR equals 4.8%. Posted: 2008-04-14
SanFranCFA Wrote: ------------------------------------------------------- > You might want to check out the errata (for > schweser and cfai) > This omission was noted back in April… > > Exam 3PM, question 18 Page: 180 - Omission > Current 180 day LIBOR equals 4.8%. > Posted: 2008-04-14 Good catch! My bad!