CFAI text book wrong solution in derivatives sample

CFA Level II Derivatives
#1

Hi all,

I have just started reading derivatives very slowly, I am on FRA forward and it seems like the whole sample is wrong?

its derivatives textbook P.289 sample 6. If you look at the solution and use their formula and plug into the calculator, u get a different answer. Sample 6 all 3 questions. if anyone is on derivatives, please confirm.

Im struggling too much in derivatives i duno whether im confused or the sample is actually wrong lol,

Thanks a lot :slight_smile:

#2

The solutions are correct in the curriculum book.

#3

to the OP - please DO NOT SET YOUR CALCULATOR to 4 DECIMAL PLACES. Let it calculate to the full extent of # of decimals allowed. You might be seeing a rounding error occur because you have fewer spaces enabled on your calculator.

And of course - you should check that you are following the right order of operations and getting a number in the same ball park as the answer given in the book.