Do v have to remember the payoff diagram and replicate it in the exam?
Also, when a question asks for some calculation, is it necessary to wite the formula or v could do it using our own logic?
it is usefull to know the diagrams–which you can very easily derive yourself from the definition of the strategy itself-- because you may be asked something like : the bull spread is most similar to (a) covered call (b) blablabla
if by replicate you mean draw…then no.
We were told by Kaplan trainer that we may be given grids and be asked to draw the payoffs in the AM session.
We were told by Kaplan trainer that we may be given grids and be asked to draw the payoffs in the AM session.