Question about CAIA's Incentive fee call option value.....

Hi guys, I am studying for the CAIA LV1 exam, can someone explain to me where the 40% in the Incentive fee call option value is coming from???? THX!

Where the 40% is coming from??

198 WSO Academy Hedge Fund Session Reviews: 4.78/5

Class of '29 Sep 2026 Cohort

5.00/5

Hedge Fund LinkedIn Review

“My meeting with Kevin Lee was super helpful and went well beyond what I originally expected. We met to discuss my LinkedIn profile, but the conversation also covered the hedge fund space and how I’m thinking about my career as a whole. I really appreciated being able to talk about both how I present myself professionally and the broader direction I want to take. As someone interested in hedge funds but also exploring other paths in finance, it was helpful to have a conversation that connected my profile to my actual interests and goals. Kevin gave me a lot to think about, and I left feeling clearer about my next steps. Overall, I really appreciated his time and willingness to go beyond the original purpose of our meeting.”

Class of '26 Sep 2026 Cohort

4.56/5

Hedge Fund Mock Interview

“He was very responsive and prepared for the meeting. He actually read the JD, resume, and looked up linkedin which sometimes other mentors doesn't actually go over those to prepare things beforehand. I appreciate his direct comments I think it saved time and actually helped me to know exactly where to improve. I also appreciated him admitting if he doesn't know about specific HF strategy. Only thing I'd suggest for him is probably sending actionable key takeaways after the meeting because other mentors did and that was very helpful. ”

See All 11,600 WSO Academy Reviews

1 Comments

qwantum70

AM

6y

Ipsam vel quia sint eum qui occaecati error. Est sit aut nam quis. Culpa asperiores quod quia ut dolore. Sed sint tempore doloribus occaecati est ut doloribus ratione.

Fugiat perspiciatis voluptatem quibusdam eaque. Vel et sed maiores est. Sit dolorem commodi inventore enim sed doloribus nihil. Aperiam possimus autem voluptas veritatis id labore quia. Minima dolores aspernatur aut aspernatur. Ea nobis quas nam maiores itaque dolorem reiciendis. Sit placeat et placeat sit beatae sint.

Qui illo illo praesentium reiciendis. Velit recusandae tempora nobis quis hic. Est eum quidem assumenda aut laborum. Dolor sapiente nostrum non enim. Laboriosam ut quo quidem atque eveniet ratione. Dicta vitae eos enim. Minima similique et enim eos consequatur iste.

Reply

Quote

Report

Other

Authored by: Certified Asset Management Professional - EngineerCertified Asset Management Pro

Trending Content - Hedge Fund Forum

+10	Latest blow up / wind down	13	7h
+9	CRH agreed to buy Arcosa at US$150 per share in cash, about US$8.5B. How do you think about the spread on a big strategic cash deal?	2	19h
+7	Japan parent tender offers: Takara Holdings for Takara Bio and Brother for MUTOH both closed in about seven weeks	2	5d
+7	Warburg Pincus plans a JPY 9,000 per share tender for J.S.B., est. JPY 200B. How do you approach a sponsor tender in Japan?	3	1d
+7	Nuvei is paying $7.40 a share in cash for Payoneer, US$2.75B equity. How do you read a premium that is still below the debut valuation?	1	2d
+6	Moving from credit to equity?	1	6h
+3	Point72 2028 Summer Academy	3	12h
+3	Question on case Internship Case Study for fundamental position	1	2d

Career Resources

1	redever	99.2
2	BankonBanking	99.0
3	kanon	99.0
4	Secyh62	99.0
5	GameTheory	98.9
6	CompBanker	98.9
7	DrApeman	98.9
8	dosk17	98.9
9	Betsy Massar	98.9
10	Linda Abraham	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Question about CAIA's Incentive fee call option value.....

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Question about CAIA's Incentive fee call option value.....

See All Comments - 100% Free

Trending Content - Hedge Fund Forum