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  #81  
Old 02-07-2018, 05:24 PM
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I don't think it's particularly boring but I feel like the material is least relevant to my daily work out of all the exams. I also understood the other exams better theoretically and felt like I wasn't really memorizing anything the day of the exam, but some of the greeks and exotic options (lookback) just have to be brute memorized and that's not really my cup of tea.
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Old 02-07-2018, 05:36 PM
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I don't think it's particularly boring but I feel like the material is least relevant to my daily work out of all the exams. I also understood the other exams better theoretically and felt like I wasn't really memorizing anything the day of the exam, but some of the greeks and exotic options (lookback) just have to be brute memorized and that's not really my cup of tea.
This is not applicable for MFE, but the good news for students taking the new IFM is that they no longer need to memorize the formulas for the six option Greeks. They will be provided in the formula document on the exam. Also, students need not know the Black-Scholes pricing formula for lookback options.
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  #83  
Old 02-07-2018, 08:18 PM
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Also, students need not know the Black-Scholes pricing formula for lookback options.
I know the first point is regarding the greeks on IFM but are you saying I shouldn't memorize the formula for the current iteration of MFE?
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Old 02-07-2018, 11:03 PM
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I know the first point is regarding the greeks on IFM but are you saying I shouldn't memorize the formula for the current iteration of MFE?
If I were you, I wouldn't memorize the BS formula for lookback option. It's unnecessarily complicated and thus in my opinion it's unlikely to appear on the actual exam. In fact, according to students' feedback, there weren't any questions in the November 2017 sitting that required candidates to use that formula. I think a more likely exam question on lookback option will be a question that requires candidates to calculate the payoff of lookback option. Another fair question will be to price a lookback option using a binomial model.
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  #85  
Old 02-08-2018, 08:30 AM
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That makes sense, thanks tkt!
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Old 02-08-2018, 12:27 PM
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Quick input, I didn't memorize any greek formulas or know lookback options at all and passed the Nov sitting. Felt as if the most they'd ask on that is 1 question and I was willing to take the L on that question to save me the headache and just master everything else. Just some food for thought
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  #87  
Old 02-09-2018, 11:11 AM
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Felt as if the most they'd ask on that is 1 question and I was willing to take the L on that question to save me the headache and just master everything else.
This is kind of the approach I was considering - to memorize delta and gamma and kind of roll the dice on the rest. That covers the two most likely to be asked Greeks and gets me most of the way through a delta-gamma-theta approximation question if one were to arise.

There are other fundamentals that seem more important (and relate to more other questions). This is a risky strategy for sure but the benefits of memorizing all those formulas doesn't seem to be worth sacrificing the other things I could do with the time that would take.
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  #88  
Old 02-10-2018, 12:34 PM
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Anyone have a good grasp on how often Black-Derman-Toy interest rate questions come up? They seem like massive time sinks based mostly on algebraic manipulation and correctly typing things into your calculator, which is exactly the kind of problem I tend to skip.

If they're not common I'm not going to worry too much about them.
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  #89  
Old 02-10-2018, 01:21 PM
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The Coaching Actuaries review videos are awesome - "My friends..."
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  #90  
Old 02-10-2018, 01:24 PM
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I thought I had no friends until I started watching the adapt review videos. Now I know I have at least one
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