hardj

[hardj]

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@Stuj79  

In the example that you just presented, can you explain what you would do if the call is underpriced and how it relates to the formula?

Reason I ask is because I know that in the equation a “+ sign” = BUY while a “- sign”= sell. This logic worked perfectly in your example but I’m just wondering how you would incorporate this into the equation if the call is underpriced since the c= S + p – X/(1+r)t would have the same signs as an ‘overpriced call’ situation…

Obviously, we want to “buy low, sell high” so we would want to buy an underpriced option but I want to understand how it works in relation to the other factors in the equation.  

[hardj]

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Thank you for the clarification!  @Stuj79  and @googs1484 

[hardj]

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Firstly, thank you all for the feedback. I really appreciate it.

 Let me be a bit more specific as my plan laid out above was more general. Tentatively, here are that dates that I plan to complete aFULL 6 hour Practice Exam:

1.       Sunday 11/16- (Schweser)

2.       Friday 11/19- (CFAI)

3.       Sunday 11/21- (Schweser)

4.       Wednesday 11/26- (CFAI)

5.       Friday 11/28- (Schweser)

6.       Sunday 11/30- (CFAI)

 

As you can see, I plan to alternate between Schweser/CFAI practice exams. In between those dates I plan to do LOS review, EOC ?’s. and QBank from Schweser. In addition, if I can fit in a couple 3 Hour Practice Exams during the work week (evening) than I definitely will do so.

 

For me, the tricky part is fitting in enough exams WHILE having adequate time in between to review my areas of weakness and review the over curriculum in general. More specifically, I’m stressing about the approach I should use in-between these practice exam dates to accomplish the following 

1.) Continual LOS review of all material w/ EOC ?’s to reinforce the material 

2.) Taking random Qbank Quizzes to monitor areas of weakness and reinforce previously learned concepts 

3.) Spending adequate time doing Practice ?’s/Reading Areas of weakness based off of my Mock Exam Performance to learn what I got wrong on these exams.

 

Any suggestions on the best route to go about balancing all of this? In my eyes, the most vital aspect of the review process is reviewing the ?’s I get wrong on the practice exams and then finding the best way to learn/reinforce the concepts.  

 

Thank you all for the help!

[hardj]

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@exam_whiz can you explain why the dividend in Time Period 1 is $4.08 vs. $3.40. I think I know the answer but I’m having trouble grasping the concept. The dividend paid at the end of 2012 (Year 1) was $3.40. The dividend then grew by 20% to $4.08 in 2013 (2nd year). Are you using $4.08 in Time Period 1 since this is the future value in year 2 which is being discounted to its PV in Year 1? 

[hardj]

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@Pranav sorry for the delay! I’ve been burried in the books. Thank you for the recommendation! I’ll see if this works. 

[hardj]

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@Roy @Pranav I completely agree that the CFAI mocks are more useful than KS mocks. However, I find it really frustrating that you can’t print out the CFAI mocks! I prefer to print out mocks so I can write on, solve problems, and make notes on them and also have them readily available to review later…any suggestions? Do you know if you still have access to the questions/solutions after taking the CFAI mock online? 

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