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Anu Dhanuka
April 29th 2008, 01:28 PM
Hi guys, i am appearing for the FM this May, and i am studying from ACTEX and Mc Donalds Derivative Market. I heard that we dont need to cover all chapters in both of these, kindly can anyone help me out with this, mentioning which all chapters we need to do for this.
Also i have one question that is this stuff sufficient for the exam, or I need to consult some more texts..
what all questions i need to practice, do any one has sample questions of FM?
If yes it wud be great help if you give me the link...

Thanks and All the best
Jo_M.
April 29th 2008, 04:01 PM
For the financial economics part, you need to go over chapters 1,2,3,4,5, and 8 of Derivatives Markets. Don't throw away your book after, though, chapters 9-14,20,24 are covered in MFE!
Anu Dhanuka
April 29th 2008, 07:31 PM
thanks Jo, and what about Actex
Jo_M.
April 29th 2008, 07:32 PM
Not sure... I'm using ASM
wonderacle
April 29th 2008, 07:51 PM
go soa or cas website and you will find a complete syllabus
binky_4me
April 30th 2008, 02:09 PM
Hi guys, i am appearing for the FM this May, and i am studying from ACTEX and Mc Donalds Derivative Market. I heard that we dont need to cover all chapters in both of these...

everything in actex is for the fm exam. i'm using it now. if you wanna meet up on the weekends and study together sometime, send me a private message. i live downtown... i'm taking the exam on may 30th.
jansder
May 1st 2008, 04:47 PM
Can anyone tell me what Chapters of the Derivitives Market are the most relevant? I've only gone through Chapter 1 and it just seemed to be terms and no real "math" related information that wasn't obvious to understand. Thanks.
Jo_M.
May 1st 2008, 07:45 PM
Up to chapter 9 in DM, there isn't much math involved. This is because these chapters serve as an introduction to derivatives and the focus is therefore more conceptual than anything. For FM, I use the textbook more as a reference if I find the explanations in ASM insufficient.
jansder
May 1st 2008, 08:27 PM
Is there anyone who has taken the exam explain what might be covered in the Derivitives book? I plan on reading all of the assigned chapters but confused as to what I could be tested on coming up in May.
wonderacle
May 1st 2008, 09:37 PM
Can anyone tell me what Chapters of the Derivitives Market are the most relevant? I've only gone through Chapter 1 and it just seemed to be terms and no real "math" related information that wasn't obvious to understand. Thanks.

This is the financial economics part,
you are right,
not too much math,
and mostly concepts,
jansder
May 2nd 2008, 09:57 AM
This is the financial economics part,
you are right,
not too much math,
and mostly concepts,

This seems to be easy but I'm sure it's a lot tougher than what I'm thinking it will turn out to be. I better not take it easy on any part. Better to over learn I guess (even though it really ''''').
dotoole
May 2nd 2008, 12:04 PM
I'd say the hardest part, for me at least, is knowing what combination of options would be advantageous (I think that's a word...) in certain situations. As long as you're comfortable with the profit and payoff graphs of each and why they look that way, you should be okay.
jansder
May 6th 2008, 10:17 PM
What percentage of the Derivatives book will be on the exam compared to the material covered in the modules 1-8? 70% on Modules 1-8 and 30% on the derivatives book? Does any have an idea here?
Elk
May 7th 2008, 01:04 AM
That's a good estimate. From what I remember, the questions in May were mostly conceptual. And, I thought they were somewhat obscure. Like, ok, I think that's the right answer but I never thought of asking that question before...There are some sample questions on the SOA website.
binky_4me
May 7th 2008, 09:05 AM
From what I remember, the questions in May were mostly conceptual. And, I thought they were somewhat obscure. Like, ok, I think that's the right answer but I never thought of asking that question before...There are some sample questions on the SOA website.

that's what i remember, too. and those problems on the soa website aren't representative of what i saw on the exam.
GooseyGoose
May 7th 2008, 10:05 AM
I met with my Actuarial Science Club last Tuesday and they had a couple of students who passed the FM exam in May of 07 speak with us. They basically confirmed that most of THEIR "DM" questions were conceptual, and only a couple were mathematical. On the other hand, a few students who had taken the exam in November, and failed, noted that there were more mathematical "DM" questions and not as many conceptual. I personally am leaning towards the committee following this trend and expect to see mostly mathematical "DM" questions.

My rationale is back in May of 07 they didn't really know how to test the material, as it was the first time they required students to know it. As time passes, they get a better understanding of what types of questions are too hard / too easy for an exam, and it becomes tuned in this way. They probably realized that conceptual problems and straight fact based questions were too easy and are slowly steering away from it.
jansder
May 7th 2008, 01:36 PM
So an example of a conceptual question would be like if you wanted have an option where you would hope for volatility you would pick...... then four answers to choose from? Something like that? I guess they don't really specify in the syllabus what to study (besides everything). thanks for all of your help.
GooseyGoose
May 7th 2008, 01:43 PM
What comes to mind when I think conceptual is like:

1. Straight definitions. One of the kids said a question on his test gave the definition of a term and you picked the term. I just don't see this happening nowadays though.

2. Show a picture of a profit graph, and ask how you could obtain the same profit graph with the following choices, and each choice would most likely have 2 options in each. (Don't know if this picture will come out but I'll try):

|
|xxxxxx ____
|xxxxxx/
| ____/
|__________

That's all I can think of right now as purely conceptual, but I'm sure there are other types.

Thinking back on it conceptual might not include definitions, I just think of any question without cranking numbers as conceptual, even if by definition that's not the case.
Anu Dhanuka
May 8th 2008, 01:20 AM
That's a good estimate. From what I remember, the questions in May were mostly conceptual. And, I thought they were somewhat obscure. Like, ok, I think that's the right answer but I never thought of asking that question before...There are some sample questions on the SOA website.

Is the SOA website questionairre correct representative of the FM exam?
As SOA 127 for P exam just gave a fair idea, but i found exam different from this.
Thanks for the replies...
Anu Dhanuka
May 8th 2008, 01:23 AM
That's a good estimate. From what I remember, the questions in May were mostly conceptual. And, I thought they were somewhat obscure. Like, ok, I think that's the right answer but I never thought of asking that question before...There are some sample questions on the SOA website.

Elk what module are you talking about...
I have ACTEX and Market Derivative of Mc Donald...
i think i gotta go with ACTEX whole and some marked chapters of MD to cover up the course....and can anyone help me in guiding where i can get more practice questions, which can reflect correct picture of the exam.
binky_4me
May 8th 2008, 11:41 AM
can anyone help me in guiding where i can get more practice questions, which can reflect correct picture of the exam.

there kinda aren't any yet... there are questions on the original topics, but there's still not any questions out there that really represent the derivative topics.
jansder
May 8th 2008, 09:26 PM
there kinda aren't any yet... there are questions on the original topics, but there's still not any questions out there that really represent the derivative topics.

Oh how the SOA likes to toy with our minds. They have thousands of people stressing out every May and November.