Negative Convexity

yes futures could have negative convexity. futures have MTM effects as well as the CTD bond could change. in short it is possible for futures to have negative convexity whereas an individual bond has positive convexity if it’s a plain bullet non callable
 
Coub Douglas (New Query)
Guys what will you do in a Coub Douglass Ques if the Caselet says that the Analyst uses constant returns to scale and the Exhibit provides a value for TFP. NOW, the Question asks find GDP growth using Coub Douglas Fn & Exhibit 1 (i.e. no mention of the constt returns to scale as written in the caselet)
 
simplex wrote:
Coub Douglas (New Query)
Guys what will you do in a Coub Douglass Ques if the Caselet says that the Analyst uses constant returns to scale and the Exhibit provides a value for TFP. NOW, the Question asks find GDP growth using Coub Douglas Fn & Exhibit 1 (i.e. no mention of the constt returns to scale as written in the caselet)
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Seems pretty straight forward. Are you questioning whether the TFP change should = 0? If so we went through it two weeks ago:
http://www.analystforum.com/forums/cfa-forums/cfa-level-iii-forum/91321516
 
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