Derivative: So hard

I’m finding derivatives so hard; feeling like skipping it.

You could, but highly risky. At level 1 the section weight was fixed, but in 2 it could go up to 15%

lots of people do too. But some of the concepts are quite easy so you should focus on those at least. for example pricing and valuing forwards and futures is really just discounted cash flow concepts. also binomial option model is very similar to bond binomial…its also easy. the z factor thing is a breeze too. the point is if you can just remember some steps your bound to pick up a few points

Thanks, Thecodont and iteracom!

@ Thecodont, that certainly makes it easier and I’m going to try that:)


just understand the linkages/implications of the variables in derivatives such as Black scholes etc , because IMO you’ll not actually have to calculate but you are liable for understanding the construction of the variables .

Trust me you will have a definate vignette on swaps more likely currency swaps because its the toughest material in derivatives and 1 vignette on options , ,which will be an easy picking . If you want to skip derivates atleast skip the rest but swaps , you wont regret on the exam day .