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CFA Level 2 – Derivative Investments, Session 17-Reading 62 Option Markets and Contracts-LOS h (Practice Questions, Sample Questions) 1. In order to compute the implied asset price volatility for a particular option, an investor: A) must have a series of asset prices.B) must have the market price of the option.C) does not need to know…

Related Rates. Problem Example 1 A man 6 feet tall walks at a rate of 5 feet per second towards a light source that is 20 feet above the ground. At what rate is the man’s shadow changing when he is 16 feet away from the light source? [Graph] x=distance from light; y=length of the…

CFA Level 2 – Derivative Investments, Session 17-Reading 62 Option Markets and Contracts-LOS d(Practice Questions, Sample Questions) 1. The value of a put option is positively related to all of the following EXCEPT: A) time to maturity.B) exercise price.C) risk-free rate. Explanation — (C) The value of a put option is negatively related to increases…

Practice Parallelograms A parallelogram is a quadrilateral whose opposite sides are parallel and which has two pairs of congruent adjacent sides. The opposite sides are called the bases of the parallelogram. The line that connects the midpoints of the pairs of opposite sides, called a the diagonal, is also a base of the parallelogram. The…

Optimization. Example Problem An offshore oil well is 2 km off the coast. The refinery is 4 km down the coast. Laying pipe in the ocean. is twice as expensive as laying iton land. What path should the pipe follow inordef to minimize cost? price=p [Graph] (x^2 +4)^1/2 cost=2p*[sqrt(x^2 +4)]+p[4-x] (cost)=p*(x^2 +4)^-1/2 *2x+-p=0 2px/(sqrt(x^2 +4))=p…

Related Rates. Problem Example 2 A man 6 feet tall walks at a rate of 5 feet per second towards a light source that is 20 feet above the ground. At what rate is the man’s shadow changing when he is 16 feet away from the light source? [Graph] x=distance from light; y=length of the…

Application to particle physics And the last one problem. You will solve it using those ideas. At least it is physics problem. Here is a wall and a line, represented by the equation x-2y=1. [Graph] A particle then enters the picture. When a particle collides with the wall, it bounces off. So, bouncing off a…

CFA Level 2 – Economics, Session 4 – Reading 20, Measuring Economic Activity-LOS c (Practice Questions, Sample Questions) LOS c: Differentiate between current and constant prices, and describe the GDP deflator.1. Which is the least accurate statement regarding the Gross Domestic Product (GDP) deflator? A) The GDP deflator that is calculated from the expenditure component of GDP…

CFA Level 2 – Economics, Session 4 – Reading 17 The Exchange Rate and the Balance of Payments – LOS d 1. Which of the following statements regarding purchasing power parity is most accurate? Purchasing power states that exchange rates: A) will change to reflect differences in inflation between countries.B) will change to reflect differences…

IGCSE Coordinated Science: Power Relate (without calculation) power to work done and time taken, using appropriate examples. Remember in the last unit we talked about “work”? What is work again? Work is the product of the force produced on a point and the distance the point moves in the direction of the force. Work is…