When does the fun stuff begin? I’ve been slowly reading/skimming through the readings and I’m on Economics and so far only part of the Behavorial finance has been interesting. Where is the good stuff? What SS does it begin. Maybe it’s just too far out so I dont have much dedication/interest to learn the stuff.

Bigwilly, I’ve read through the first 3 books and it doesn’t look any different. Same general talk with nothing I can take and actually use (The only calculation I have seen so far is Sharpe Ratio). Feels like reading a bunch of topics on Wikepedia. My only motivation so far is to get it over with. Unlike L2 where I actually enjoyed the challenge of understanding what they’re talking about and applying it.

Three letters: I P S Not fun though.

one more letter… G I P S all of a sudden, suicide seemed like a great exit plan

it only gets worse - I found L3 material very difficult to get into - but I passed so who cares.

I read the CR for both levels 1 & 2 and I don’t remember it being this dry in the past…

I fell asleep many times as I was reading the CFAI material. Boring and dry!! Got my Book 4 from Schweser; FUN FUN!!

i liked the fixed income and derivatives, but they are quite challenging (esp. derivatives). Other than that, you will notice the shift away from formulas and calculations to much more subjective material (along with lists and lists of shit. get ready to use accronyms ie. SAMURAI) it may be boring, but level III is not easy, especially given the quantitative focus of levels I & II.

I think derivatives are a joke compared to L2. I still remember how much time I had to put in just to get through the swap (and swaption) value section … So far L3 seems more like L0.

derivatives in level II amounted to formula memorization. The swaps material, and call & put combinations are tricky at level III. They don’t shy away from asking payoffs from mutliple put/call combos. Do some practice exams and hit a derivatives item set. you’ll see what i mean about them being harder at level III…

I guess that’s why we have different opinions. I never memorized any formula. I can’t imagine memorizing a formula for the value of a currency swap before expiration for example. Calculating the payoff for any derivatives portfolio is just a matter of spreading out the cash flows under the different possible scenario. The rest is just plugging numbers.

if you didn’t memorize black-sholes, how would you answer a question on it if they don’t provide the formula??

Actually we didn’t need to memorize BLack-Sholes( the LOS said when provided with the formula).

mo34 Wrote: ------------------------------------------------------- > Actually we didn’t need to memorize BLack-Sholes( > the LOS said when provided with the formula). It was nice, wasn’t it?

jeff_s Wrote: ------------------------------------------------------- > derivatives in level II amounted to formula > memorization. > > The swaps material, and call & put combinations > are tricky at level III. They don’t shy away from > asking payoffs from mutliple put/call combos. Do > some practice exams and hit a derivatives item > set. you’ll see what i mean about them being > harder at level III… I am perfectly fine with calculating the payoff in option using numeric terms, however, some question ask the express the payoff in general expression (strik price, stock price, premium ect). I have problem remeber those.