Derivative Question from Mock Exam 2012

Hi all, i need help to see if my method is correct anot? The method will be different from CFA method but i got a feel it make sense but i am uncertain. Below will be a question from mock paper 2012. I would provide CFA method and my method.

[question removed by admin]

i know the overall answer has one contract difference but i would like to know if my method is coorect anot. If i am wrong, why? Thanks so much

though your method has been discussed before - please note that you will NOT get full credit from the CFA graders. Follow the method in tthe book. Use this shortcut to determine if you are close.

If you have ONLY a couple of mins at the end of the AM session to do the problem - use your shortcut

Thanks alot cpk123

I don’t see why he wouldn’t get full credit.

They’re doing allocation first, beta second; he’s doing beta first, allocation second.

Frankly, I’d be surprised if you didn’t get full credit for doing them together, by changing the dollar beta: http://financialexamhelp123.com/dollar-duration-and-dollar-beta/

Hi S2000 Magician, Thanks for your help.

It seem that the concept is right, but i am not confident of it.

My pleasure.

In that Q7 of the mock, one could answer for the equities 241.67+221,52= 463 and not 464.

Would that be correct? to me, it makes more sense since he achieves both with higher accuracy.

Yes