Things have been rolling with the prep: Ethics, FRA, Equity, Alternative Investments… and then I hit derivatives. Having very little experience with this topic (as compared to virtually all other topics at level 1)… I feel like I hit a wall. I followed the 4+ hour lecture from Elan/Wiley videos on the reading (readings 58 & 59, in particular… reading 57 was fine as the intro) and I was wondering how such a complex topic represents 5% of the exam and wondering if I will ‘get it’.
I haven’t done the CFAI EOCs or blue box as of yet nor the Elan/Wiley EOC questions.
Hoping for input from the AF community for this topic!
Happily is only 5% lol, guess it were 20%, no no. That 5% means only 6 questions in AM test and 6 in the PM one; and there is only 3 readings, so on average you will encounter 4 questions for each reading in both tests. It is not imposible, and not even hard. At the end you will find them funny and adorable, really.
Agreed, I didn’t read Derivatives for L1 and still managed a >70 on the section just by doing the online practice tests and mocks and working my way to the answers. I do with I spend more time on Put-Call Parity as I see that concept carries forward to L2.
I do believe most of the mock questions focus more on theory than specific formulas. You want to have a good understanding of how these securities actually work, and many times you can work back to an answer without knowing the formula.
I took into consideration everything on this thread and also from a few others who got through level 1. Given that more ‘memorization’ will occur later on in the process and I wasn’t too thrilled about a portion of these concepts for derivatives, I did the CFAI EOC and Elan/Wiley EOCs to the best of my abilities. Once going through the questions and full debrief of the solutions (for right and wrong answers) + review of theory, it went a lot better in terms of understanding than expected