Disclaimer: I’ve never taken the L2 and struggle with vitrually every topic lol
If you are strong with the financial derivatives section you can ignore this post. If you’re like me and have struggled nailing down the swap valuations, FRAs, etc… then please read on.
Like most of you I’ve been studying a ridiculous amount the past 4-6 weeks but I’ve never been able to nail down most of the derivatives section regarding solving the equations. It has been a weak point on my mocks. Therefore, I buckled down last night and studied into the night by meticulously going through the EOC problems and CFAI material. (not Schweser as I’ve done previously). I am so glad I did that.
If you’re struggling with derivatives I highly recommend you spend the time to go through the EOCs thoroughly. I feel 20 times more confident for derivatives now. It seems so easy to me now that it’s hard to believe how much I struggled with them (which was a lot).
I also recommend calculating out all of the swap equations using PV factors as they instruct in the curriculum (unless of course you’ve mastered this already in your own way). Being naive (and probably a little arrogant), I thought I could just conceptually figure out the problems with valutaion for swaps and not have to spend time learning and memorizing the CFAI way of calculating. Big mistake.
I hope I was able to pay it forward to at least one person out there. AF has been a huge help to me this last month. Thanks to all the posters and people who have responded to my questions. Stay strong, keep working, and don’t surrender to the ever luring temptation of apathy!
I will be on here for more help this fall lol, hopefully with those of you that have passed in the level 3 forum. If not, I will be on here for L2 again because failure is not an option!!