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Hi,
Please advise on the issues below.
1. Forex Risk
In the Forex risk question, on the currency Option Heging, the examiner give us a range of exercise prises (strike prices).
When answer the question should I pick up one price and then apply the currency option hedging ie. calculation of contract size, premium etc
or
should I apply the currency option hedge to all the exercise prices given by the examiner.2. Exam Technique on exam paper
At the exam, is there an exam technique regarding which question should I answer first (ie start from Section A and then to Section B or vise versa or a combination)?
What is the best combination in order to have a good time management and gain passing rate?Thanks
For a perfect answer you should show the result of all the strike prices. However with limited time, the most important is to prove you know what you are doing by calculating for one strike price in detail. Doing just one of them will not get full marks for that section, but will certainly get the half marks you need.
Different people have different views on whether to start on Section A or on Section B – there is no perfect answer. I myself prefer to start on Section A since there is where most of the marks are.
However…..more important than anything is that you allocate your time. You must do something (however little) for every part of four questions. It is better to have all the questions part finished, then to have 2 or 3 finished in full (but inevitably with mistakes in them).
Even on a section that perhaps you know very little about, you can still get some marks – even if only 1 or 2 marks – very quickly. 1 or 2 marks seems like nothing, but it is everything if you otherwise fail on 48 or 49!!
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