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标题: got 3 questions left on my list [打印本页]

作者: Wendy01    时间: 2011-7-13 16:33     标题: got 3 questions left on my list

1. If # of contracts is 915.32, do you round down to 915 or round up to 916?

2. Passive / Replicating Index: Expensive to initially create, but then transaction costs are low because the only time you need to create transaction costs is to reinvest dividends. True?

3. Disclose vs Written Consent: anyone have any final advice here? I know if it is from a client, you can disclose a gift for past performance but ask for consent for a gift that is contingent on future performance. I think if it from a nonclient entity, you need written consent for past gifts but may not accept anything that is contingent on future events.
作者: canadiananalyst    时间: 2011-7-13 16:33

1. round nearest, so 915
2. true, or if it's a bond index, and a bond matures you have to reinvest that.
3. don't have a full answer but firstly it's about value of gift, then client gifts are ok if interests are aligned, gifts from brokers trying to bribe you aren't.
作者: NakedPuts2011    时间: 2011-7-13 16:33

so if broker says i'll give you world cup tickets if you send me business from these clients obviously thats disallowed even if you disclose--employer would say no way.

but what if broker says, thanks for sending me business, here is a weekend stay in vegas for your and your wife. i would assume you should disclose?
作者: former    时间: 2011-7-13 16:33

ok also on question 2: look at cfai volume 4 page 157.

119.69 --> 119 contracts
作者: mik82    时间: 2011-7-13 16:33

1. Round to nearest, this case #915
2. True, BUT you incur costs upon index reconstitution, index rebalancing and also for dividend and coupon reinvestment
2. Correct about Client ex-post and ex-ante gifts. Any non-client gifts must not even have hint of tainting Independence and Objectivity, and should be pre-approved and disclosed
作者: jmh530    时间: 2011-7-13 16:33

I don't think they'll penalise for 120 or 119. The whole technique is highlighted in the text as being approximate. Just write 119.69 ~ 120 make it clear where you came from. Job done.




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