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Hi John,
I’m looking at question 63 c in Kaplan kit, Uniglow, and confused with the top line of d1.
With the D1 formula being 1n(Pa/Pe)+(r+0.5s2)t – I though this would be,
1n(200/220) + (0.06+0.5 x 0.5)0.25 then divided by 0.5*0.5
however the answer is different. Please can you help explain why?
Many thanks
I am sorry, but I only have the BPP Revision Kit – not the Kaplan one.
If it is a past exam question, then tell me which exam and I should be able to find it.
I have found it, and it seems that Kaplan must have simply copied the examiners answer.
The answer is correct, but the examiner rearranged his own equation which was an odd thing to have done (you will also note that in two places he has written “(0.25)^0.5” which is another way of writing the square root of 0.25).What you have written is not correct. Using the formula as it appears on the formula sheet, you should have written:
ln(200/220) + (0.06 + (0.5 x 0.5 x 0.5)0.25
and then divided this by 0.5 x 0.5This gives – 0.19624
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