ASM MFE Manual
I received my ASM Exam MFE Study Manual. It was thinner than I expected. From what I can tell, it’s divided into 9 sections, plus practice exams:
- Put-call parity
- Binomial trees
- Lognormal model
- Black-Scholes
- Delta Hedging
- Exotic Options
- Monte Carlo valuation
- Ito processes
- Interest rate models
- practice exams
Out of these, Black-Scholes, binomial trees, and ito processes are most important, although I feel that each of them will have a maximum of possibly 3 questions on the actual exam.Therefore, to facilitate the studying, I have decided to split the material as follows:
- Put-call parity, binomial trees
- lognormal models, Black-Scholes
- Delta hedging, Exotic Options
- Monte Carlo valuations, Ito process
- Interest rate models
- practice exams
This division will allow me to follow a tighter study schedule, allowing for a faster material absorption rate.
Another study manual that my friend recommended to me is actuarial brew. However, I’m not in a position to pay for another manual. ASM hasn’t failed me yet, so I’ll stick with them for now. I don’t believe study material is the main factor in passing or failing the exams; it’s more of how many practice exam problems you did. Some people can study for 150 hours and still fail; others can study for 70 hours and pass. It’s up to how fast you can understand the material, and how many practice problems you did so you don’t have to think as much on the actual exam.
