(1+0.0545*(240/360))=0.9649 CALL OPTION RED RIVER RED RIVER IS SHORT...

1/ - L3 MOCK SAMPLE EXAM CFA LEVEL III GUIDELINE ANSWERS 2008 1/ - L3 MOCK SAMPLE EXAM CFA LEVEL III GUIDELINE ANSWERS 2008
L3 MOCK SAMPLE EXAM CFA LEVEL III GUIDELINE ANSWERS 2008
1/(1+0.0545*(240/360))=0.9649 Call option Red River Red River is short the call option and is not subject to credit risk. The option is in the money and can be exercised at any time, so the counterparty is subject to credit risk. Counterparty 2008 Level III Guideline Answers Morning Session – Page 27 of 40 Question: 8 Topic: Portfolio Management – Execution of Portfolio Decisions Minutes: 14 Reading Reference: