Bump. Keep at it guys!
bump
Bump
^ Damn Quant. Where was this thread around May-Jun 2010? Anyway, I will need it for my second attempt at level 2 next year.
I sure hope you won’t. I’ll be back on board this June. I kinda missed L2.
P - presentation A - all-current F - functional T - temporal L - local If Local currency = functional, cover the T with your finger --> leaves A to convert functional to presentation If Functional currency = presentation, cover the A with your finger --> leaves T to convert local to functional
Put/Call parity when a foward contract is involved p=c+(x-f)/(1+r)^t
Bump. Bookmark this. Add to it freely.
determining pricing for the fixed rate swap: c= 1-z4/ z1+z2+z3+z4 never could find a mneumonic for that. where zn= respective pv discount factors for that respective spot on the yield curve.
bump
bump, pretty useful thread
Extended CAPM requires two restrictive assumptions: 1) Same Consumption Baskets 2) PPP always holds. These assumptions are not required for the ICAPM. Both are not the same thing. Govt Intervention Theory: Bonds have positive exposure to currency risk. (Govts get exposed) Free Markets: Bonds have a negative exposure to currency risk. Money demand models: Involves appreciating currency, but not necessarily bonds.
bump
integraldx Wrote: ------------------------------------------------------- > Extended CAPM requires two restrictive > assumptions: 1) Same Consumption Baskets 2) PPP > always holds. These assumptions are not required > for the ICAPM. Both are not the same thing. > Same consumption basket and real prices not nominal prices… watch out for this.
Rather than constantly bumping the thread is there any way the admin of the forum can make this “sticky” until the exam? Not sure who the best person to ask but I think that helps eliminate the 20 + bump posts while still achieving the same goal of keeping it on top.
bump