What formula is this to calculate duration of a call option as i don't remember seeing this in the syllabus? Also, which study session and LOS? The duration of the 90-day call option equals: = (delta of call option) × (duration of underlying) × (price of underlying) / (price of call option) = 0.4 × 16.93 × 1,037,560 / 27,568 = 254.87 or approximately 255 @RaviVooda @alta12

@vincentt I didn't recalls either as I was doing the mock. It's in reading 22 fixed income CFAI p.119. Got a 2 minute mention.

@vincentt I've been using Schweser for quick reference only. They seem to have placed some bets on what will be tested. Skim through the CFAI readings if you have time! When do you plan on completing your last mock?

A CFA Level 3 Discussion About CFAI 2012 Q7

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This topic has 8 replies, 2 voices, and was last updated Oct-174:09 am by vincentt.

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- vincentt
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  - CFA Level 3
  20 Oct 2017 at 10:26 pm
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  What formula is this to calculate duration of a call option as i don’t remember seeing this in the syllabus?
  Also, which study session and LOS?
  
  The duration of the 90-day call option equals:
  = (delta of call option) × (duration of underlying) × (price of underlying) / (price of call option)
  = 0.4 × 16.93 × 1,037,560 / 27,568 = 254.87 or approximately 255
  
  @RaviVooda‌ @alta12
- Alta12
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  20 Oct 2017 at 11:30 pm
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  @vincentt I didn’t recalls either as I was doing the mock. It’s in reading 22 fixed income CFAI p.119. Got a 2 minute mention.
- Alta12
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  20 Oct 2017 at 11:40 pm
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  @vincentt I’ve been using Schweser for quick reference only. They seem to have placed some bets on what will be tested. Skim through the CFAI readings if you have time! When do you plan on completing your last mock?
- vincentt
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  - CFA Level 3
  20 Oct 2017 at 11:48 pm
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  @Alta12‌ just completed and reviewed 2012’s, only managed 58% 🙁
  
  ya didn’t do well on open ended ones as my answers could be right in general but they didn’t have it in the list.
  
  Yes past midnight now, you must be from further west?
- Alta12
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  20 Oct 2017 at 11:54 pm
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  @vincentt Sydney. Morning study time now. Long day ahead.
- vincentt
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  - CFA Level 3
  20 Oct 2017 at 11:43 pm
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  @alta12 i’m not doing too well on essay part, very worried now. I’m only targeting 6 mocks I don’t think i will be able to finish more than that. That includes 3 schwesers would be a bonus if i can do a 4th one.
- Alta12
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  20 Oct 2017 at 11:45 pm
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  @vincentt are you using CFAI books or just Schweser? I find the AM parts are easier to deal with when they provide a template. When it’s open question, it’s really hard to judge how many points you are meant to make even though they say for example 9 minutes. Keep going!! It must be late in London! 😮
- vincentt
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  - CFA Level 3
  20 Oct 2017 at 11:36 pm
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  @alta12 thank u so much! It is indeed in the syllabus but i think i missed that out because the LOS states Explain… so i thought calculation wasn’t required. Plus, schweser did not provide any example right after so i thought it wasn’t important.
- vincentt
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  - CFA Level 3
  21 Oct 2017 at 4:09 am
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  @alta12 @RaviVooda‌ 3 different continents, pretty wide coverage.
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