Ok, i *really* need some clarity here.
In the text forwards on equity and or bonds that have dividends and coupons, respectively, can be solved either by a.) deducing the PVD or PVD from the spot and multplying that by the RFR to the time power, or b.) using the standard spot times rfr to the time power, then deducing the whole thing by the FVD or FVC.
This works fine, but when you get to the “futures” section, and not the “forwards” in the EoC the lesson earlier, it gives you all the formulas as only using the FVD / FVC format (doesn’t show PVD or PVC). I figured it was just a screw up and you could still use either one, since theoretically they are the same.
When I go to actually solving the problem using only the PVD / PVC format (why memorize more than I have to), the answers I get are NOT the same. Could someone please explain this and maybe show me an example of calculating a problem (say page 241 # 6 and #7, for example).
Thanks.作者: Roflnadal 时间: 2013-4-8 13:44
For 2010 schweser futures 6&7 are on page 53 with answers clearly on page 55….work out fv of coupons and take away from?, spot x 1.0rfr ^t… It seems pretty clear Fv as you need value at expiration..
sorry if above is confused?page 241 is Intl asset pricing in my book???作者: karoliukas 时间: 2013-4-8 13:45
read the title.作者: Viceroy 时间: 2013-4-8 13:45
Tried to offer assistance with respect to fv value of coupon as you are concerned with expiration value in my response…..
Is this an old post from last year? Surely 2010 information is better for an exam to be taken 06/05/10.作者: bchadwick 时间: 2013-4-8 13:46
So to clarify nobody knows the answer and would rather talk about useless stuff and show everyone how funny they are…..?
Yes, I’m using “outdated” curriculum. DIdn’t seem to hurt me on level 1 when i got 70 in all but one. I just want to know if something is messed up in the book or if you cannot substitute the PV/FV formulas in futures the way you can forwards…作者: slackeranalyst 时间: 2013-4-8 13:46
…sorry sold my old ‘09 material on ebay作者: NakedPuts2011 时间: 2013-4-8 13:47
i just did this section last week. i used the pv formula in forwards and continued to use them in futures section despite the text showing fv. redo them, the answers i got were the same within 1 or 2 cents (rounding).作者: hanvinh 时间: 2013-4-8 13:47
Was this on the 09 version? Because i have found it LADEN with errors in many sections.作者: nixie24 时间: 2013-4-8 13:48
in the 2010 version. i went thru all futures questions, and did it my way (pv way) and then compared to their answers using fv way and it was the same.
