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Could not agree more. Disaster. Which questions did you attempt guys?
Cant we be unethical for a while to say few words for this p4 examiner?
Such scattered info in q1 and asked for every single thing in question 1 from blackscholes to wacc and valuation to benefits.
Q1 , Q2 and Q4. Q4 was the EASIER of the lot
Regrettably spent the least time on q4 – EVA and part c) on performance was very doable 🙁
Q1 had blackscholes?real options? i failed to notice that..
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At one moment i was about to cry!!
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That 50 Mark question is getting harder and harder each attempt.
Kamdar yes q1 has blacksholes and most of the people missed it because dont know what this examiner actually wants! Instead of volatality he gave probabilities n all that ! This was not just limited to blackscholes. Q1 was completely a diasaster. Used maximum time and almost all of us ran out of time
Can somebody please tell me the main differences between futures and Salam contracts
Someone really upset this examiner off been this time round, as this exam had elements of p7 p5 and f5 all in one exam, plus there was no standard deviation so i just used any figure.
There was decision trees in that Q1 aswell I think, theres a good chance I will be doing this paper in June, if you had studied P5 with this paper you may probably would of done ok.
How much marks do you get for workings because thats going to be the deciding factor here?
For the cashflow in Q1 was it right to discount at the Ke? I did not calculate WACC because we were given the free cashflow to equity is this right?
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Haha, then I made up a different Salam-like contract 🙂
In Q2 it said the futures basis difference was 44 points, but does this mean futures is higher or lower than LIBOR??
So if today libor was 3.8% does this mean futures today are 4.24 or 3.36??
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I tried it for the third time and i am very dissapointed. Instead of testing knowledge they are testing speed. I only tried q1 (not even finished) and q2. This was the case with all my attempts. I knew how to do all of the questions, even if not perfect, but for sure if i had more time i could score more than 50%. I cannot believe they are actually evaluating speed of answer. We are not manufacturers, we are accountants!
P.S. I tried all methods like attempting q1 first, or last, this time it was second/in the middle, but didn’t have time for the third.
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4.24
oh and I valued a put option for Q1 because it was a right to sell so thats a put option right?
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I couldn’t believe how easy Q2 n Q3 were. Q3 in particular.
Now coming to Q1, what a disaster. Little time to do option, then i realised there was no straightforward info on standard deviation/volatility and a possible way was doing it using the probabilities. By this time had lost a lot of time so moved on.
Q3) Value at risk : can someone tell me if confidence levels examined were 95%n 90%?
I saw the first no was 95 so did not pay much attention due to time pressure n calculated next one at 99. Later a friend told me it was 95 and 90.I was just laughing all the way home after exam. I spent every single minute available, and I still won’t score even 10 marks in total. How ridiculous waste of time and money was it to go there in the first place 😀
Well, no I know to practice more.
I hope you guys did well, I’ll nail it in June.- Topics: 0
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I agree with you guys
This paper was just terrible.anyone know how to get beta of luxury transport out of beta asset and beta non-luxury transport business?
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Agree that Q2 & Q3 are fairly straight forward except for the Sama-like contract that I just invented. Q3 is for 95 & 90% and you need to look up the z score from the normal distribution at the end. I believe 95% is 1.65 and 90% is 1.3 or 1.4
can someone please let me know what answer you got for the interest rate options this is where I think I messed up
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Williams1977- I thoght of decision trees also, but when i realised i needed volatility for the black scholes i tried to calculate the decision tree-like for the period after the second year (relevant for the option)
i skiped the Salam all together 🙂 it was only 4 pt ????, i only remembered musharaka and mudaraba, so …. Bad luck.
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