Corrections Q5 iii) It should be Fi (-0.815) Q10 ii) It should be exp(0.07*20/12) & not (1.07)^(20/12) as force of interest is mentioned in this question.
This paper was incredibly hard - and I was resitting! The BPP notes and tutorials I did, didn’t even cover a lot of the things that came up in the exam
In question no. 9 ii, I think you should take 101 or 1.01 as the current share price as we are given that the inflation stands at 1% and the derivative product is linked with the inflation index.
Corrections
Q5 iii) It should be Fi (-0.815)
Q10 ii) It should be exp(0.07*20/12) & not (1.07)^(20/12) as force of interest is mentioned in this question.
This paper was incredibly hard - and I was resitting! The BPP notes and tutorials I did, didn’t even cover a lot of the things that came up in the exam
Q4 (i) Var = 0.00052 = 2.28^2%%
And the answer you stated for 6 (ii) is that of 6(iii) a
In question no. 9 ii, I think you should take 101 or 1.01 as the current share price as we are given that the inflation stands at 1% and the derivative product is linked with the inflation index.
Sir in Q10 the dividend are reinvest In share so we will multiply 1.03
Sir please do one for CB2!!!!!!
In q9 instead of 1.01^8 if I’ve done 1*exp(1%*8) would that yield marks?
Are chapters 3 and 5 also removed from iai syllabus?
Yes. It should be technically.