i am going to review all my flash card, go through section by section and try to remember every testable formulas. I am also going to do ethics question in book 7. don’t have time to do the rest of the question there, but ethics is a must.
I have never felt this burnt out in my life. Maybe I should just meditate all day tomorrow or watch some movies… But no, I’m sure I’ll either p!ss the day away at AF or trying to cram every sentence in the cfa curriculum into my brain.
Really though, probably quicksheet, ethics, formulas and a couple of 2006 CFAI vignettes.
Turkish Wrote: ------------------------------------------------------- > I’ll be cramming till late tomorrow. me too
i still haven’t read a lick of options or swaps material. i think i’ll read options and write swaps off.
I can promise you that there will be a vignette on SWAPs
completed a brief review of the material today… just some Ethics and Corp Governance tmrw for me. Plan to wind up by 5 pm and no more AF or books after that!!
swaps are easy! Remember that the swap has no net value at inception (that is, it is of equal value to both the fixed and the floating side) but, as interest rates move over the life of the swap, the net value changes so one side will have a profit and the other has the offsetting loss (it’s a zero sum game). You value a swap by taking the PV of one side minus the PV of the other side. The rate the fixed side pays (F) is unknown at inception but is determined through solving for PVfixed - PVfloating = 0. In order to solve this, you need to know the floating rate, and have a model for the term structure covering the life of the swap. F is given by the formula F = (1-Zn)/sum of Zi over all n, where Z are the discount factors from the term structure. It’s just like valuing a bond. Don’t get hung up on the notation (such as payer swap.) Just do one example, don’t give up on them, swaps are so easy compared to some of the other stuff and you can do it. The only wrinkle is in the floating rate. If the floating side pays quarterly LIBOR, it pays the rate that prevailed the prior quarter.
im gonna wake up to quickie and go to bed to one…in between…i think ill mow the grass?
you need to tucker yourself out tomorrow so that you will sleep soundly at night
clipper1 Wrote: ------------------------------------------------------- > Sunday morning, first thing, or maybe even on my > way back from the exam on Saturday, I’m buying an > Xbox. I need mindless activity… My wife will > probably kill me, seeing as how I’ll go from > bookworm to videogame freak, but its all about me > anyway, right? I have decided to go with Microsoft Xbox 360 (20GB) too. Do you think it’s a better gadget than it’s counterparts (Sony, Wii)
Sup Dinesh… I think the Wii is out on principal alone… I mean, if I want to play golf or tennis, I’ll just go out and play. So, between the Sony and 360, its kinda a toss up I think. I’ve played both, but like the 360 a bit more. Have you played both?