Formulae Sheet

[Laurelinda]

Originally Posted by Allacalander

I started reviewing the formula sheet the other day and I have to say I find it completely useless!

The Hull section is a lifesaver for me. As for the rest, I'm having much more trouble following it than for APMV last spring. Concepts seemed better organized among logical readings then...

[_BullDog_]

Originally Posted by Laurelinda

The Hull section is a lifesaver for me. As for the rest, I'm having much more trouble following it than for APMV last spring. Concepts seemed better organized among logical readings then...

Also make sure to know FETE SN106 - interest rate models, caplets, swaptions, likely several points will come from there.

[Laurelinda]

Originally Posted by _BullDog_

Also make sure to know FETE SN106 - interest rate models, caplets, swaptions, likely several points will come from there.

Right--I'm assuming you're talking about the note that's the same as the infamous APMV 125 (Oxford Guide). Yes, the formula sheet is excellent on that one, too.

[mlschop]

I'd be curious how they decided what to include and what to not include on this formula sheet.

Also...there are - maybe - 70% of the formulas that I look at and go "wtf is that?!" Anyone else feel that way...or does that just mean I'm screwed?

[Laurelinda]

Originally Posted by mlschop

...or does that just mean I'm screwed?

Nope, it just means you're normal.

I'd say >50% aren't useful. Maybe >60%.

Some help me remember concepts even without being useful as a formula, though. Exotic options, for instance. I can remember all the different flavors by going to the Hull section of the formula sheet and counting them off.

[_BullDog_]

The 26 pages FS was a lot better last year, and even that one had a lot of formulas they could have left off. And what gets me the most isn't the amount of formulas but the fact they still left off most of the Greeks....

[TwinsFan1987]

Originally Posted by _BullDog_

The 26 pages FS was a lot better last year, and even that one had a lot of formulas they could have left off. And what gets me the most isn't the amount of formulas but the fact they still left off most of the Greeks....

Well, maybe if there is a question on the Greeks again, it will be another "Calculate 3 greeks for 1 point" to skip.

On a side note, I don't want to memorize theta. The others aren't so bad. There is a formula on the formula sheet that links theta with gamma and delta -- does that work? They would probably have me calculate gamma and delta anyway, so I could just use that.

[Allacalander]

Actually, even Theta isn't that bad. I reviewed these formulas at one point and noticed that they all have similarities and if you take note of them, its a lot easier to memorize them. Some of the traits aren't evident based on the way they're written.

If I have time, I'll post my discoveries on here later. That should help everyone.