3rd Time I Received a 5 on this exam...help!

[ml692787]

So I scored a 5 for the 3rd time in a row. I've been sitting for this exam for 2 years (4 sittings), and have tried study guides, straight textbook studying, online course through the infinite actuary, and now I'm stuck because I really don't feel I can get over that 5 mark. The theory of interest material I have down almost perfectly, it's the derivative market material that I get confused with. These word problems pop up, and I'm absolutely horrible at interpreting them and figuring out what they are asking for. I've kind of trained myself a little better since this past November sitting while studying for MFE, which covers the derivatives market in more detail and that may be what i need to get a better feel...but here is my question to you posters: what is the best supplement out there, or best way to go about preparing for the derivative market section? The calculations with spreads, put-call parity, swaps, forward rates/pre-paid forward rates, discrete/continuous dividends payed on a stock I'm all well studied on. It's the conceptual ideas I'm losing sight on, and when i see one of these questions on an exam: what is the best no-arbitrage strategy, or hedging strategy, or what type of strategy would you use if so and so wanted to make so and so money on increasing/decreasing stock prices...either i'll think i know the answer, and the answer choices confuse me or are not there at all, or i just have no idea and will guess. Sorry for the long post, I appreciate any responses and your time for reading this!

[abanky]

I used Schraum's outlines of Investments second edition and series 7 materials to get a better grasp of the Derivatives.

[Bama Gambler]

My advice is to work more problems this time around. Also work those problems in a timed environment. Work problems in groups of 5 or 10 and set a clock for 30 minutes or an hour respectively. Don't look at your notes when you are working the problem and don't check to see if you got them right until the time is up.

Try to get a good mix of problems in your set of 5 or 10. Even mix interest theory problems with derivative market problems. Keep track of how many you get right on each set and you should see this number improving as you get closer and closer until the exam. The week before the exam you should be getting at least 4/5 or 8/10 on almost every set. Problems that you miss in your set watch the video solution I provide. Put that problem in a special stack and work those problems back into your set.

My guess is you know enough to pass, but get nervous on exam day. Replicating the exam pressure while you study can help you practice for that pressure on exam day. You might want to play games with your sets. For example, maybe you like to watch Lost. Tell yourself that you can only watch Lost this week if you get at least 5/10 on your set. As you get closer to the exam, then you can increase the required number correct to get your reward.

I hope this helps. If you are having trouble understanding any particular section of the material, then don't hesitate to contact me. We can talk it out over the phone if that is helpful too.

Best of luck and study hard!

James

[chopsuey]

I scored 5 twice (May 07, May 08). I figured it had to be a confidence issue. Exam day came this November and I walked into the room like I had already passed the exam.

Killed it this time.

Confidence (and a little extra study) will get you that point you are looking for.

[Fermat83]

Originally Posted by ml692787

So I scored a 5 for the 3rd time in a row. I've been sitting for this exam for 2 years (4 sittings), and have tried study guides, straight textbook studying, online course through the infinite actuary, and now I'm stuck because I really don't feel I can get over that 5 mark. The theory of interest material I have down almost perfectly, it's the derivative market material that I get confused with. These word problems pop up, and I'm absolutely horrible at interpreting them and figuring out what they are asking for. I've kind of trained myself a little better since this past November sitting while studying for MFE, which covers the derivatives market in more detail and that may be what i need to get a better feel...but here is my question to you posters: what is the best supplement out there, or best way to go about preparing for the derivative market section? The calculations with spreads, put-call parity, swaps, forward rates/pre-paid forward rates, discrete/continuous dividends payed on a stock I'm all well studied on. It's the conceptual ideas I'm losing sight on, and when i see one of these questions on an exam: what is the best no-arbitrage strategy, or hedging strategy, or what type of strategy would you use if so and so wanted to make so and so money on increasing/decreasing stock prices...either i'll think i know the answer, and the answer choices confuse me or are not there at all, or i just have no idea and will guess. Sorry for the long post, I appreciate any responses and your time for reading this!

Bama Gamblers post was dead on.

My honest opinion,there are 2 things that could be happening:

1.) You are lazy, and don't know how to properly study. For any of these
exams practice makes perfect. That means doing many problems. I spend 85% of my study time just solving problems as many as I can find, I also prefur the most difficult problems as well. I passed this sitting the first time with an 8, also the same for MFE. Studying for MFE's derivative material made studying the Derivative material for FM a joke. In the beginning I solve problems not under time constraint but as the exam date approaches I do what bama gambler said start solving problems using a timer, 2-3 weeks before the exam I start taking practice exams under SOA's time constraint, I ussually do 5-10 practice exams minimum. Strong study habits are critical in this profession.

2.) I hate saying this to someone, but here goes. If you are practicing the study habits above or very similar,you might want to reevaluate your situation, as maybye you aren't cut out for this and its time to move on.
Exam FM is the easiest of the preliminary exams, exams MLC/3L and 4C are more difficult conceptually and denser(in terms of material) than P,FM, and MFE. After those babies the difficulty gets turned up for exams 5-9 as now there are essay questions which I imagine they can literally ask you a ton of questions you haven't studied for but you have to use the information you studied and your problem solving skills to figure out. The only way to get good at this I imagine would be an insane amount of practice. Also I am pretty sure
knowledge from the preliminaries must be very well understood. No shame in cutting your losses. Good luck in whatever you decide to do!