How far should we go in this chapter, should I make sure I can explain how the Monte Carlo Simulation works and be able to value any kind of Embedded Option? In other words, should I enjoy the rigour (& the Math)_as preparation for the exam, and maybe for it's own sake?
In the past, the rigour of the maths has been for your own pleasure. It has come up a couple of times and has involved discussing material that is in the chapter rather than doing calculations. The X Assignment is more numerical than the exams have ever been. Hope this helps.(There is of course no guarantee that past exams will reflect future exams!!)
