CFA CFA Level 1 Question of the Week – Derivatives

Question of the Week – Derivatives

  • Author
    Posts
    • Avatar of AdaptPrepAdaptPrep
      Participant
        • Undecided
        Up
        6
        ::

        The amount Haspiess owes is 0.5 * $75,000,000 * 5% = $1,875,000.
        The amount Signicomp owes is 0.5 * $75,000,000 * (3.5% + 0.75%) = $1,593,750.
        The netted payment will be Haspiess paying Signicomp $281,250.

      • Avatar of simply_complex2simply_complex2
        Participant
          • CFA Level 1
          Up
          4
          ::

          if only the exam was color coded to highlight key words…wishful thinking haha. but i definitely agree. a lot of my mistakes stem from the fact i dont take the time to properly read the question

        • Avatar of shannondailyshannondaily
          Participant
            • Undecided
            Up
            4
            ::

            Woo! I got it right. 🙂 

          • Avatar of simply_complex2simply_complex2
            Participant
              • CFA Level 1
              Up
              3
              ::

              missed the semiannual part. i guess that’s kind of important…. >.<

            • Avatar of policedogpolicedog
              Participant
                • Undecided
                Up
                0
                ::

                @simply_complex2‌ that’s what I feel is 80% of the reason of wrong answers when I take an exam. Its not like I don’t get it, but the question often makes things so convoluted that its so easy to miss/confuse things. So far no remedy found except to keep practicing…

              • Avatar of RoyDRoyD
                Participant
                  • Undecided
                  Up
                  0
                  ::

                  In the KS books, words like ‘most likely’ or ‘least likely’ are usually in Italic. Does help.

              Viewing 5 reply threads
              • You must be logged in to reply to this topic.