Choosing option

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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November 20, 2020 at 5:20 am #595692
sephora1
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Sir I wanted to enquire about one thing
Suppose in a interest rate hedging question .. 2 option rates are given .should we show calculation with one option or both? In examiners answer they show with both…
November 20, 2020 at 9:10 am #595727
John Moffat
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For full marks you should show both. If you are running out of time then just proving you know what is happening by just doing one of them then you would get more than half the marks for that part of the question 🙂
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