Hey Ashnut, Q9, strike of the put should have been 0.9 times of current index instead of 1.1 times the current index? That would have positive cashflows below 0.9So, offset the losses below 10% of current index. So, restricting the losses upto 10% of current value Also, Q10, could this be binomial since Binomial model has Blackscholes as a limiting case?
Hi sir! Thank you so much for this video. In the last question, I took the poisson process parameter as 0.025 instead of 2.5. How many will I get in part (ii) and part (iii) given that I have shown my workings fairly? Also, in Q3, I took the value of z as 0.8416 instead of -0.8416 while calculating Pr(Z > z) = 0.8. As a result the answer to part (i) and (iii) comments are messed up. I have shown sufficient workings in part (i). How many marks will I lose in these two parts given that comments in part (iii) are logically correct based on incorrect answer in part (i)? One last question, in Q3 part (ii)(a), I have taken Z_0.05 as 1.645 instead of 1.6449. There is a $3 difference in the answer. How many marks will be deducted here? I would be really grateful if you can answer these questions. Thank you!
Very helpful video
Glad it was helpful!
Hello sir,
Can you please upload a video for solutions of CB2(MCQs) as well?
Sir can you pls upload the solutions for CM2 paper B as well?
Hey Ashnut,
Q9, strike of the put should have been 0.9 times of current index instead of 1.1 times the current index?
That would have positive cashflows below 0.9So, offset the losses below 10% of current index. So, restricting the losses upto 10% of current value
Also, Q10, could this be binomial since Binomial model has Blackscholes as a limiting case?
Hi Nirav,
Kindly check the wordings of question which states that minimum return would be 10%. Not a fall of 10% but return of 10%.
Hi sir!
Thank you so much for this video.
In the last question, I took the poisson process parameter as 0.025 instead of 2.5. How many will I get in part (ii) and part (iii) given that I have shown my workings fairly?
Also, in Q3, I took the value of z as 0.8416 instead of -0.8416 while calculating Pr(Z > z) = 0.8. As a result the answer to part (i) and (iii) comments are messed up. I have shown sufficient workings in part (i). How many marks will I lose in these two parts given that comments in part (iii) are logically correct based on incorrect answer in part (i)?
One last question, in Q3 part (ii)(a), I have taken Z_0.05 as 1.645 instead of 1.6449. There is a $3 difference in the answer. How many marks will be deducted here?
I would be really grateful if you can answer these questions.
Thank you!
Hey Ashnut,
Thanks for doing the video.
Planning to do a session on subject CP1?
Thanks
Hi Suresh
We wont be releasing any discussion video for CP1.
@@actuarialscienceclasses cool thanks for letting me know!
Hii sir please release solutions for cs2 paper too
Hi
We have released today the detailed solutions discussion for CS2 A.
Sir cs1 ka bhi kra do
Hi Gaurav
We would be releasing that in next few days.