Level 2: mixed practice
Each question is one of the ten skills of Level 2: a forward price, a forward price with dividends, a forward contract’s value, a currency forward, a forward price with a cost of carry, a convenience yield, an arbitrage profit, a short sale, a margin call, or the price that brings a margin call. As in an exam, you also have to choose the right rule. You master the skill when you get three right in a row, with at least one right answer for each of the ten.
Mixed practice:
After a wrong answer, the lesson for it is one click away: forward price, dividends, a forward’s value, currency forwards, cost of carry, convenience yield, arbitrage, short selling, daily settlement and margin calls.
Concept check: true or false
Exams also ask about ideas, with no numbers. Decide whether each statement is true or false, and you will see why after each answer.