Derivatives are a freaking nightmare

CFA Level II
#1

That’s all I have to say

#2

The range for derivatives is 5-15%. What are the odds that we actually get 15%? I would be fucked.

#3

it has been 10% (2 vignettes) for the last 5 years

#4

reallly?!?? oh boy i was thinking of skipping a lot of derivatives.

#5

I wish it were all derivatives and no pension accounting or CTA.

#6

Pension accounting is easier than derivatives, but CTA is harder than some of the derivatives.

#7

Depends on what part of derivatives. After reading the SG 3 times, videos, and secret sauce I think I’m now comfortable with FRA’s. Now I just have to attack swap valuation. Options, futures, and forwards aren’t that bad.

#8

Swaps are easy. The only tedious part is all of the daycount conventions and keeping track of the cash flows. Just take your time and write everything out, no shortcuts. I’m trying to apply the same method to pension accounting (not taking shortcuts, I mean.)

#9

I’m hoping we only get 5% on quant… I managed to underperform the 33% pure guess score on that section… how sad.

#10

^^yes, quant sucks. hoping for 5% again this year too.

#11

Yeah I would trade all little obscure areas like economic growth theories for just derivs.

#12

DoubleDip Wrote: ------------------------------------------------------- > Swaps are easy. The only tedious part is all of > the daycount conventions Can anybody list …where to use 365…and where 360 ? I always getconfused…

#13

LIBOR/EURIBOR: 360 most of other places -> 365

#14

Regarding the daycount conventions: Not sure whether I’ve seen questions where using the wrong one would get you into trouble (making you choose a wrong answer). On-topic: Derivatives is by far my strongest point. You do my FSA, I’ll do your Derivatives. Deal? :slight_smile: I’m hoping it will have a 15% weighting, that makes it likely there will be a lower weighting for FSA and I’ll be cheering. Cheering hard.