CF abd MV Risk practice, material, related, across, market

LBriscoe

any good practice questions anyone came across related to market value and cash flow risk?

this is related to fixed and floating swaps. prime material for a bank IPS.

Valores

coolness. i wont break my head on this topic anymore

Windjammer

Selling payer swaption creates cash flow and market risk. The only way to limit one or the other is to buy an option or enter a swap. Selling an option allows exercise by someone else at anytime creating both risks.



Edited 1 time(s). Last edit at Sunday, May 29, 2011 at 11:14AM by Paraguay.

oneboy

so did y'all see any good questions then?

Valores

Paraguay Wrote:
-------------------------------------------------------
> jorgeam86 Wrote:
> --------------------------------------------------
> -----
> > Pm section of Schweser exam 3 vol. 1 had a
> > question on this.
>
> That was one of the worst questions I have ever
> seen.
>
> Selling a payer swaption actually creates both
> market and cash flow risk.
I know I re-read the question 3 times bc it didnt make any sense to sell the payer swaption.

Darien

jorgeam86 Wrote:
-------------------------------------------------------
> Pm section of Schweser exam 3 vol. 1 had a
> question on this.

That was one of the worst questions I have ever seen.



Edited 1 time(s). Last edit at Sunday, May 29, 2011 at 11:07AM by Paraguay.

Valores

Pm section of Schweser exam 3 vol. 1 had a question on this.