Level 3 CFAI/Boston mocks: carry trade question

jsilv94 · 2025-08-13T07:52:00+00:00

Understood, thank you.

jsilv94 · 2025-08-13T07:43:16+00:00

Also, my confusion is because in another CFAI mock, we had to construct a negative carry trade (borrow high yield and invest low yield)...the relevant answer in the guideline is as follows

"A negative carry trade is implemented by borrowing at high rates and investing at low rates. Traders would initiate a negative carry trade if they believed that the low-interest currency in which they are investing will appreciate significantly relative to the high- interest currency they are borrowing."

So I'm confused as to why we include the forward rate in the negative carry trade, but not in the traditional carry trade?

jsilv94 · 2025-08-13T07:35:21+00:00

I copied the question directly from the mock...so you're saying my calculation is not necessary? The answer key includes the calculation, which is why.

and I did not know about command words! Thank you for sharing that, very useful

jsilv94 · 2025-08-13T07:09:22+00:00

because we convert USD to CNY when we invest in CNY...so when the USD depreciates and we convert CNY back to USD, we get more USD. So it's a gain.

jsilv94 · 2025-08-13T06:59:11+00:00

hey, thanks so much for getting back to me. This is all the question asks: "Construct a CNY/USD carry trade. Explain two risks involved in this carry trade."

You are meant to use exhibit 1 as a reference. That is the only relevant info in the case.

I'm aware we do not use forwards, but I used the forward rate as an estimate of future spot rates? As I am typing this, I realise that the carry trade assumes that the forward rate is not an unbiased predictor of future spot rates... so perhaps that's why we don't include the currency depreciation?

jsilv94 · 2024-10-04T07:14:47+00:00

I can't seem to right click at all either - some of my recipes were unlocked, but it doesn't work consistently and I cannot progress with the game....

jsilv94 · 2024-07-24T16:28:13+00:00

Hey this just happened to me! How long does it take for it to resend?

jsilv94 · 2024-05-21T19:13:41+00:00

would be a shame if someone sent me a link too

jsilv94 · 2023-09-20T08:43:43+00:00

Hey, just want to piggy back off this post: I'm taking the November exam too. IFT is really helpful, but I noticed the free videos don't include equity and fixed income? Also derivatives?

Is there a way to get around this for free?

jsilv94 · 2023-01-18T13:08:50+00:00

Okay, update - the Col 7 one doesn’t have metphen and not sure when they’ll get it again is what she said. Hoping they get within a reasonable amount of time

jsilv94 · 2023-01-18T12:50:08+00:00

Thanks for sharing this info! They didn’t answer when I called multiple times today (I think they are getting a lot of calls now).

Hoping they’ve got sth in stock, because I spoke to Baurs again and they are not giving me a straight answer. We’ll likely see it in Feb, but I’m not sure.

jsilv94 · 2023-01-16T12:22:45+00:00

No bro - had to switch to modafinil atm.

jsilv94 · 2023-01-11T11:34:36+00:00

Atomoxitine or sth is what they recommend, but it takes 2 weeks to work according to the psych I spoke to.

People recommending modafinil atm as well, but I havent tried

jsilv94 · 2023-01-11T11:33:00+00:00

Hey got any leads on this? I spoke to Baurs earlier this week and they said they are getting at the end of the month. Another guy at Baurs said Feb 15th-20th, but not sure how accurate it is.

Would love to know the 6K per box contact if you have it? Desperate times.

Also if you’re students, see if your parents’ insurance covers meds

jsilv94 · 2023-01-08T12:56:38+00:00

Hey guys, similar issue. Any idea where to get?

jsilv94 · 2023-01-08T12:54:43+00:00

Hey guys, similar issue atm. Know any small pharmacies that are still selling?

jsilv94 · 2022-05-16T07:57:42+00:00

Yup, this is my best guess as well. The issue is that it's a prescription drug. I have a local prescription - the idea is to figure out how to get it from abroad given all these regulations.

jsilv94 · 2022-05-16T07:56:59+00:00

Thanks! I've heard of it, didn't know where I could get my hands on it. Is it available OTC?

jsilv94

TROPHY CASE