On page 165 section 4.4 using options to do what? also, how did they get 6800 par of bonds to sell?
Fixed income portion is driving me nuts
It does not make sense to me as well. I thought the calculation should be 10,000/1.418 = 7,052
In addition, if they want to increase convexity with futures, I don’t understand why they sell the 30-year bond that has higher convexity instead of a short term bond.
This section 4.4 and 4.1 have some calculations that I really don’t get.
https://www.analystforum.com/forums/cfa-forums/cfa-level-iii-forum/91363074