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1.Notes1 294 equity collar part: the last sentence—note that the collar must be set wide enough such that the investor can lose money, or it will be deemed a constructive sale. What does this mean?
2.Notes3 Page 80 the example, since the %delta value is -2million, and the objective is to limit it to 1 million, and the answer says that we should short future contract. Am wondering that, from -2 to -1, shall we buy futures instead? Confused here….
3.Notes 3 Page 135, the last paragraph, equity swaps are discussed as part of potential moral hazard problem with upper management. What’s that about?
4.Notes4 page 70 last paragraph,…especially comparing the differences in the basis risk of financial and commodity futures. Who can tell me what is the difference?
5.Notes4 Page 124, the middle paragraph of this page…”short term contracts may generate higher commission costs than longer-term contracts, but they may reduce the number of transactions necessary to adjust the hedge.” Since we have to roll up the short term contracts for many times, why we say it reduces the number of transactions?
6.Notes 4 Page 204, the delta hedge example, cannot understand it well…
7.Notes5 page 44, the paragraph of “changes in asset class expected returns”. “if quality spreads are abnormally wide, lower quality bonds may be more attractive over the next period” why?
8.Notes 5 Page 50, last paragraph of this page. “…the very last dollar in the portfolio consists of the established proportion of debt and equity (i.e., effectively the portfolio goes to zero)” what does it mean?
9.Notes 5 Page 149, FOR THE EXAM part, it is describing a contradiction appeared in the curriculum, who knows what’s that about and is it really serious?
10.Notes 5 Page 196, the 2nd paragraph: “if a portfolio’s status changes from discretionary to nondiscretionary, the portfolio may not be removed from a composite retroactively. However, the portfolio must be removed going forward.” Does it mean that, the history record will be kept, but the portfolio will not be included in this composite anymore?
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发表于 2010-5-26 22:32
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