Progress so far (Schweser books)

Only got Hedge funds left on book1. Will finish that this week and the next. Book2 looks alright, mainly articles and research. Must say Level2 is not so bad as I previously thought. Very few calculations. Level 1 covered many of these topics, so it is fairly straight forward to learn of few new indepth concepts. Loads of errors in the Schweser book1 so far, the errata sheet is piling up. Very frustrating to spend valuable time looking examples or questions that don’t add up or make any sense, just to find it a week later on the Errata reporting.

Done with both Schweser books. I hope we do not underestimate this exam judging from the Schweser materials. I am thinking of actually reading the original articles covered in books 2 as well.

What is Schweser’s take on Black & Scholes? I was wondering this with regards to convertible arbitrage. The original text has B&S formula and the LO says something about calculating the convertible bond value, without any reference to binomial trees only. In Uppermark, B&S formula is not on their formula sheet. Binomial tree related formulas are covered. I was thinking that in principle, one could have a question that requires you to remember B&S formula if the question gives a list of some N(x) values, i.e. you need to know how to calculate x.

BS is not on the Schweser formula sheet either. The curriculum points out that the formula need not be remembered, but one should be familiar with overall gist of the model (i.e., drawbacks etc.).