My assumption with the derivatives section is that the only calculations i can be expected to make are payoffs (or basic hedges) and we aren’t going to see the kind of complicated computations as seen in Level II. i,e most questions will be qualitative rather than quantitative. Am i delusional? schweser has the occasional very complicated derivatives calculation so that is why i ask.

Remember Payoff = Valuation

Remember Payoff = Valuation Whats that?

Payoff = Value of Options/derivatives Payoff does not equal Profit Made this mistake with Sample Exam #2 as did many of us.

bigwilly, I think this question was in Sample #1, since I haven’t take #2 yet, but clearly remember making that mistake

Weird…b/c I’m pretty sure it wasnt in the Freebie…

that’s with sample exam #1, the freebie. - sticky