[aprille]

I had this one too (50 marker on the risk management)
Tough paper.

I have never seen them ask to calculate the cost of borrowing the money to pay the premium on the options before!
Not that doing that was difficult but it threw me off.

Like so many aspects of this paper.

Usually you’re given the FRA rates and instead I calculated them using PPP, I don’t know if that was the right thing to do.

Because I was under such time pressure I didn’t get a chance to go back and review what I did and I made some snap decisions … ugh. This subject is hard.

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