Lunch Crunch 2!

CFA Level II
#41

Let’s go with C. Silver not energy

#42

c?

#43

Your answer: C was correct! Commodities that are easily purchased and have relatively low storage costs, such as precious metals, generally stay close to their theoretical values. This is because arbitrageurs could easily trade in both the spot and futures markets, forcing the futures price back to equilibrium. In contrast, it is difficult and often impossible to take short positions in commodities which are not storable or that have high storage costs. Futures in such commodities, such as energy, can often deviate from their theoretical values.

#44

Your answer: C was incorrect. The correct answer was A) buy a bond or sell a credit default swap. To gain an exposure to credit risk, an investor could buy a bond or sell a credit default swap. When the market realizes that a bond has less credit risk than thought, the bond will rise in price. Alternatively, by selling the swap, the investor would receive a premium up front and owe no further compensation to the swap buyer if in fact the bond does not experience a credit event.

#45

I think you forgot the question on the CDS

#46

Which of the following most accurately describes the appropriate position in credit default swaps and bonds? If an investor believes that credit risk is overstated by the market, the investor should: A) buy a bond or sell a credit default swap. B) sell a bond or sell a credit default swap. C) sell a bond or buy a credit default swap. I suck at CMBS and CDS. This is my weakest bank of knowledge so far. In any case, how was day two? Should I contine the lunch drill?

#47

Please keep up the great work, even though I am not studying this stuff righ now, I know what I have to look forward to and can always refer back to this Lunch crunchs

#48

I’ll keep doing it as much as I can. The tax firms breaks for lunch, however, once business starts getting crazy, I may be skipping lunch to continue working.

#49

I’m not this far through the curriculum/notes either. On the Qbank, you can view individual LOS summaries which are 3 paragraphs or so and answer a few questions. I find that is a pretty good way to quickly learn a concept regardless if I have reached it in the readings yet.

#50

i’m a big fan, keep it up

#51

yeah+1 for me. i even like the Lunch Crunch name. you should get that trademarked immediately

#52

CFA MASTERS

#53

Monday suggestions? I’ll bring my calculator along so Quant/FSA/Corp Fin/etc can be utilized.

#54

Quant, econ, or corp finance

#55

Are these Schweser qs? Also, did you notice that the questions change for each quiz (unlike level 1)

#56

All from the Qbank.

#57

like the thread idea ditch. i’m glad to see you haven’t actually gotten this far. I thought you were a complete freak of nature for a minute there.