标题: CFA Mock Exam - Ouch.. [打印本页] 作者: RoastBeef 时间: 2011-7-11 19:42 标题: CFA Mock Exam - Ouch..
In question 42:
How can "B" not be the cheapest collar? You're offering to take a loan at 6.5% and give it at 4.0%. Widest range so it has to be the cheapest!! Why is "B" incorrect?
In question 46:
Again "B" diversifying across currencies should reduce risk? Why does the CFA not agree? (Those bastards, ha ha).
46: I think it says eliminate risk, I got this wrong too.
NO EXCUSES作者: dyga 时间: 2011-7-11 19:42
Are you asking about #41 actually?
B.
You buy a put. Put strike at 4.0 makes the put cheaper -> collar cheaper
You sell a call. Call strike at 6.5 makes the call cheaper -> collar more expensive
Correct answer:A
You buy a put. Put strike at 4.0 makes the put cheaper -> collar cheaper
You sell a call. Call strike at 5.5 makes the call more expensive cuz its more likely to be ITM -> since you sell the Call, you get more money and the collar is cheaper作者: Windjammer 时间: 2011-7-11 19:42
bpdulog Wrote:
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> 46: I think it says eliminate risk, I got this
> wrong too.
He's correct. THey say "eliminate risk" but diversifying only decreases risk.
Lemme know if you happen to have 2010 or 2009 Mock exams! :-)
