Highly recommend the CFAI problems from this Study Session…
ya me too
Can’t remember what it is?
Risk Management using derivatives ?? am i right?
Yup. Options, SWAPS, and Futures/Forwards
i wish all exam was derivatives, including some stochastic calc and linear algebra
Wait a minute!!! Are you guys being sarcastic!!! You guys are silly!!!
No I’m serious, The item sets from the 2006 exam are in the book! And they were EASY! We won’t be so lucky though.
comp_sci_kid Wrote: ------------------------------------------------------- > i wish all exam was derivatives, including some > stochastic calc and linear algebra Your sadistic . If that was the case …I wd’ve never got past Level 1 …I hate SS13, thankfully the material is finally starting to sink in … I will be hitting up the CFAI Q’s later tonite …
Pg. # 273 Will do these this weekend
great it only took me about 1 hr to do 2 item sets …and i think the 2nd Q was easier than the first …I’m doomed if the actual exam item sets get a lot tougher than this …
I agree with Rudeboi. SS#13 is the toughest one so far to slogg through IMO. Very dry stuff and time consuming. Especially this rounded futures crapola. It seems like an awful lot of calcs for a tiny bit of rounding.
“tiny bit of rounding” huh? Last time I checked rounding was a 1st grade math principle. If its 0.5 or higher, round up to 1…if its lower than 0.5 round down to 0.
SS 13 is actually interesting, IMO.
Don’t overestimate the CALC’s…its derivatives…but I would bet CFA will still manage to test a good chunk of this topic qualitatively.
Bigwilly I can handle the 1st grade rounding, thank you. What I’m talking about being a pain in the butt is the whole process of the synthetic cash and equities in SS13. Basically its seems to me to consist of taking the amount of money, discounting it at the risk free rate to find out the exact number of futures, then rounding that number of exact futures to the nearest whole number, then future valuing that whole number of futures at the risk free rate to find out the exact amount of money, then discounting that number back at the dividend yield and then future valuing that number at the dividend yield. Phew!! I’m not sure I’ll have time on the exam to actually do all that. Somebody please kindly point out if I am missing a step or can some guru point out an easier way to think about this conceptually or organise the process, Bigwilly if you are so smart why don’t you please explain it properly :-))). …I don’t deal with futures in my day job but while computationally simple in each step, it just seems like a lot of steps for what in essence is solving for a tiny bit of rounding IMO. I guess if you dealing with 100’s of millions then the rounding means something but it is still a royal pain.
OH I know what part you are talking about…YES I hate that part too! I was confused by your earlier post. I think the easiest way to learn it, is to just memorize it by doing problems over and over again…But that is only one part of SS#13, everything else I liked, that part I didnt. There was actually someone on this forum that had trouble rounding…that is why i posted what I posted 
Thanks Bigwilly, I look forward to getting to the more interesting bit of SS#13. I agree with you that people should not have trouble with basic rounding at this stage of their careers but I was referring to the whole synthetic process. I guess I’ll just have to memorize the whole process of the synthetic cash and equities, from doing the problems over and over and hope the understanding of it filters in later. However, if some guru out there knows how to clearly explain it to us all, and break it down, I would be keenly interested in reading what they have to say.