Progress Check (FRM Part 1, May 2014)

[frm_risk]

Hi all,

I just wanted to see how much other exam candidates have studied so far - just as a reference point for my studying.

I am studying for FRM Part 1 exam in May 2014.

So far, I have covered (read material/notes, written my own study notes, but not practiced many problems/questions) the following "readings" as they have been indicated in the study guide/AIMs Statements :

Foundations of Risk Management - 1, 2, 7, 9
Quantitative Analysis - 10 (having a quant background, I am hoping this section will go thru faster)
Financial Markets and Products - 15, 16, 17, 18, 19, 20
Valuation and Risk Models - 22, 23, 25

As such, I have completed only 14 out of the 30 readings for the Part 1 exam. I am very concerned.

I decided to target the bigger sections first (John Hull and Tuckman) and focus on the smaller readings in Foundations of Risk Mgmt later.

A side note: I was initially planning (still praying and hoping) to take both parts (Part 1 and 2) in May 2014, but with my little progress so far, taking Part 2 does not seem like a good strategy. I will of course try to push myself to see if I can take both parts, but haven't studied anything from Part 2, and the Part 2 topics don't seem that friendly

How is everyone else doing?

 

[Alex_1]

Hi, I have also actually planned on taking both parts in May 2014, so far my focus has been oriented stronger towards Part 1, although I have already gone through videos, notes and selected PQs of P2.T5 (Market Risk). I have actually written a much longer answer, but I am having trouble in posting the reply, as an error message (only for this thread) keeps popping up. Anyway good luck to you and to all the rest preparing for the FRM! I will post a more detailed progress update at a later point in time. Best regards, Alex

 

[David Harper CFA FRM]

@Alex_1 so sorry the forum gave you an error message (I hate the feeling that we'd lose your valuable contribution ). Our developer is working on an update-solution .... thanks,

 

[khaled binhotan]

I'm getting worried as long as I go quickly reading the notes. I found it for some parts especially the derivatives a math trick that I can't memorize formulas. I wish any way it can help me passing CFA level 2 exam in case I got certified. It seems I have to rise my defenses up.

 

[frm_risk]

@Alex_1: I look forward to reading your full response, once you are able to post complete messages. As you can see, I haven't even looked at Part 2. I hear you: I agree that now is a good time to slowly incorporate some of that Part 2 material.
@khaled binhotan : Yeah, that's my concern, too. I feel I am just "reading" through all the material (and taking notes) but in the last month or so, when I sit down to memorize it and start solving lots of questions/exams, I will be overwhelmed. Oh well, gotta stay focused right now.

 

[BlackSwan]

Taking Part 1 in May as well. I have read through FRM readings and most of QA readings (Plan on finishing chapters 8,9,10 this week).

i plan on starting the 3rd topic of readings next week and giving that ~ 4 weeks. Then the last topic of readings another 4 weeks.

This timeline should give me 3-4 weeks of review and heavy practice questions/exams. I've had coursework from school in the past that has dealt with all of these topics before so I am familiar with most of it its just putting it all to memory and correctly executing problems.

I feel the last month before the exam should be used for practice exams/questions

 

[EvanDM]

I am intending to take PArt I in May and have not started at all yet. Do you think its still doable?

 

[BlackSwan]

I am intending to take PArt I in May and have not started at all yet. Do you think its still doable?

It's tough to say if you can/can't pass the Part I exam in May with not knowing your background knowledge on the subjects.

There's about 11 weeks til the exam date and there's 4 main topics for Part I. For the average individual that has to work full time, if you haven't had any exposure to these topics before it'd be a lot of information to cram in that short time in my opinion.

From what I've heard/read is ideally you want to give atleast the 2 weeks before the exam for just review & lots & lots of practice questions (if you weren't already doing them) so you would have to cover all four main topics by end of April if you wanted some good review time (GARP 4 textbooks are roughly 150 pages each for books 1 & 2 and roughly 300 each for books 3 & 4 so thats about 800-1000 pages to cover I'm not sure the exact number) with BT"s videos and study notes you may be able to cram it all in if you've dealt with these topics before one way or another.

Personally I would wait until november if all of this is brand new material you haven't seen before. You know yourself the best so you're the one that can answer this the best.

 

[NNath]

Hi, If you have gone through Valuation and Risk Models. I have the following question

If the current market price of a stock is USD 50, which of the following options on the stock has the highest Gamma
1. Call Option expiring in 30 days with a strike price of USD 50
2. Call Option expiring in 5 days with strike price of USD 30
3. Call option expiring in 5 days with strike price of USD 50.
4. Put option expiring in 30 days with strike price of USD 30.

The correct answer is 3 but I believe its 2. Since the time period is least and the option in deep-in-money as compared to 3.

 

[Pflik]

Gamma is greatest approximately at-the-money (ATM).

if you remember gamma is the rate of change of delta. Delta would be changing most when the volatility is highest. Volatility is highest ATM QED Gamma is highest ATM

 

[NNath]

Got it thanks