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 Financial Mathematics Old FM Forum

#51
08-11-2011, 11:20 AM
 adley Join Date: Jul 2011 Posts: 5

These aren't exactly study notes, but it's a wikibook for the exam that I've been working on. http://en.wikibooks.org/wiki/Financial_Math_FM
#52
10-26-2011, 11:30 AM
 einstein SOA AAA Join Date: Oct 2011 Location: Ghana Takoradi Studying for Exam FM College: University of Cape Coast Posts: 9
appreciation

Thanks for sharing

F
#53
11-12-2011, 07:44 AM
 Ammar Husyn Join Date: May 2010 Posts: 20

Can anyone share their notes and problems on Convexity and immunization.

Regards.
#54
12-08-2011, 01:26 PM
 Noman188 Join Date: Aug 2010 Posts: 5

I have a question...
For 3 years you are given compound Interest, simple interest, simple discount, compound discount. Arrange in ascending order ?

Could anyone help me out to solve this...please

Thank you so much!!
#55
12-08-2011, 02:13 PM
 TheMJ Note Contributor SOA Join Date: Nov 2010 Studying for MFE Posts: 512 Blog Entries: 1

Quote:
 Originally Posted by Noman188 I have a question... For 3 years you are given compound Interest, simple interest, simple discount, compound discount. Arrange in ascending order ? Could anyone help me out to solve this...please Thank you so much!!
Try this approach: Set a numerical value, probably 10%, and try getting the PV or FV of \$1 using this 10% as compound interest, simple interest, simple discount, and compound discount. See which one is highest.
__________________
TheMJ, formerly known as CERA-SEEKER

P FM MFE MLC C
VEEs: Economics App. Statistics Corporate Finance
#56
12-09-2011, 05:14 PM
 Noman188 Join Date: Aug 2010 Posts: 5

Quote:
 Originally Posted by TheMJ Try this approach: Set a numerical value, probably 10%, and try getting the PV or FV of \$1 using this 10% as compound interest, simple interest, simple discount, and compound discount. See which one is highest.
After trying this approach...setting i=d=10%, i ended up with..

(1.10)^3 = 1.33 (compound interest)

(1+(.10)(3))) = 1.30 (simple interest)

(1-(.10))^(-3) = 1.37 (compound discount)

(1-(.10)(3)) = 0.7 (simple discount)

"Correct me if i mistaken in formulas..."

Thank You so much !!
#57
02-15-2012, 08:57 PM
 PlanetExpress SOA Join Date: Jan 2012 Location: New Jersey Studying for FM/2 College: Tulane University Posts: 9

Quote:
 Originally Posted by aaye Since there seems to be a lack on derivatives markets notes on this forum, I am uploading some notes I made for myself. It definitely does not cover everything on the DM portion of the syllabus, but it contains the different types of option and spreads, as well as some other topics. I used a combination of the ASM manual and McDonald's Derivatives Markets textbook to compose these notes. Graph images were taken from Marcel Finan's free online FM/2 textbook (found here: http://www.atu.edu/mathematics/finan...hall/mainf.pdf) They are certainly not perfect and I am happy to correct any and all errors. Just PM me and tell me what is wrong with them. Also, I apologize that the graph images in the PDF file did not convert so nicely from Word, but the Word document was too big to attach. Best of luck to all future exam-takers!
Great job on the study guide aaye, but I think the labels for the Long Put and the Short Put are mixed up- from what I understand a put situation is as follows:

The seller purchases the put (short put)

The buyer writes the put (long put)
Attached Images
 Derivative Markets.pdf (665.5 KB, 2748 views)
#58
06-01-2012, 08:29 PM
 Durlov Member SOA Join Date: Apr 2012 Location: Carson City, NV Studying for ASA Modules College: Ex-Cuse Alum Favorite beer: Bud Light Posts: 65 Blog Entries: 1
FM Formula Practice Sheet

Hey all,

Used this Formula Practice Sheet when studying for Exam FM. It's quite extensive and helped me remember all the formulas. But, please note, practicing problems is the best way to learn!! I passed and this website was great help! I'll add a rough answer sheet soon.

Btw, I found it useful to do the formulas randomly.

Comprehensive FM Formula Practice.doc

FM Call Puts.doc
#59
06-11-2012, 12:08 PM
 Liusong SOA Join Date: Mar 2012 Posts: 5
Thanks for sharing. It really helped a lot.

I am studying for the Exam FM this August, and I really found the summary sheet here useful.
Thanks.
#60
07-22-2012, 04:15 PM
 Durlov Member SOA Join Date: Apr 2012 Location: Carson City, NV Studying for ASA Modules College: Ex-Cuse Alum Favorite beer: Bud Light Posts: 65 Blog Entries: 1

Here's the rough answer sheet to the FM Formula Review Sheet
Attached Images
 Scan1.PDF (124.1 KB, 2106 views) Scan10001.PDF (91.7 KB, 1704 views) Scan10002.PDF (88.3 KB, 1218 views) Scan10003.PDF (93.6 KB, 1195 views) Scan10004.PDF (92.6 KB, 1180 views)