Oct 2010 Exam

How was it people? I thought it was vague. And as mentioned by others before, the study material/ question banks just did not suffice for the black-scholes numericals

 

Hi, I thought it was pretty tough alright. I didn't know anybody doing the exam where I sat it though so I'm not sure how others did.

 

what the hell was default rate? exp (- int(lamda (s))?
also i got the risk free rate as 3.5% any confirmations??

 

It was easy

It was easy for me....becuase I did ST6 but ST6 was hard..very hard.

 

the most difficult question for me was the one asking for "Ito formula"...I knew all the applications of Ito lemma and some Ito Integral features, but did not have time to really think how to do this question....how did you do it? was it difficult for you?

 

why was ST6 more difficult to CT8? do you mean mathematically more challenging?

 

Looking at empirical evidence of the ST subjects ST6 has perhaps the lowest pass rates and has been the least popular - 80 to 120 people per sitting with 25% to 35% passing. Both the mathematical and non-mathematical stuff is challenging. The easiest questions in ST6 are like the difficult ones in CT8.

However, (it will now look like I am contradicting myself) the truth of the matter is there is nothing that is intrinsically and objectively hard about anything when a person is provided the resources and they have given themselves enough time. I found that there was a distinct lack of relevant practice questions that prepare you for the exam in other words a lack of resources (ACTED’s fault) and I worked on the course for only 2 and 1/2 months vis-a-vis there was insufficient time, mea culpa.

ACTED Q&As are a piece of cake in comparison to the sheer brutality of the ST6 exam. Many have said the same about CT8. I think so too. CT8’s Q&A bank gives you a false sense of security.

 

I plan to study & take CT8 in April, so this comment jumps out.
In general for the previous CTs I've found the Q&A bank & X-series questions very good. I would go as far as to say if you can do all of these questions, there's little that should trouble you on exam papers. (I also do past exam papers)
Is it different for CT8?

 

I find some exam questions much more complicated than Q&A bank. Ofcourse there are also easy questions on the exam....I think that the level of difficulty is well reflected in past exams....

 

It very much is different for CT8. Take heed.

 

Any other thoughts, experiences and advice?

Nobody seems to be writing about the past Oct exam....

 

What chapters/ sections of ST6 should i do?

I probably have to resit this exam. If so, to be sure I am well prepared and also to get a good grip on the subject besides just passing, what chapters/ sections of ST6 should I do to be certain of tackling the questions on Black-Scholes? Like the ones that were in the papers this time?

 

the Black Scholes question on this exam in Sept 2010 was in my opinion pretty straightforward....nothing that would be outside of the core reading of CT8.

 

You shouldn't try to do a few chapters in ST6. Drop everything and do ST6 and CT8 in your next session. This would mean you only need to do part 1 of CT8 and wilkie's model separately. ST6 has the rest of CT8 in it. Moving from ST6 to CT8 would be like moving from heavy weights to light weights. Go on, give it a go. Imagine passing an CT subject and an ST subject in one session.

 

This statement is so true I keep reading it and I would've probably put it on my FB profile as a favorite quote...

I think ActEd is less equiped for this type of theoretically-intensive subjects. I found it extremely difficult to swallow Ito Integrals/Processes without rigorous maths proofs and the Course Notes sometimes recommend students to focus on the applications "rather" than understanding the maths.The changes from Riemann to Lebesgues are indeed "brutal".

I've never figured out why we should be asked to perform simple division/multiplication in order to fool ourselves on the change in probability measures until I learnt about Radon-Nikodym in ST6.

CT8 is just a messy course, you do the first part and think you know the stuffs until you find out about the bizarre unrrelated topics in the second half. All those bond pricing formulae in the Credit Risk/Interest Rate Models past papers can be a bit nebulous at times!!!

The Institute should rethink CT8, e.g. toughen up CT1/CT7 with the first part and include the rest in ST6 as a two-part Mathematical Finance subject with a CA2-like application as a 2nd part. There should also be more reference to Quants text books e.g. Steven Shreve or Paul Wilmott.

 

Hi All,

I've been reading all the stuff on this exam and it seems like a toughie. I'm planning to do it in April, and would appreciate any and ALL recommendations to as best as possible guarantee a pass in April... Any additional textbooks I should get, past subjects/topics I should refresh on, etc.

Thanks much.

 

Don't ask me how but I passed yipeeeeeeeeee

 

Me too

 

Me too....of course. More relief than excitement. It wasn't the most difficult paper.

 

I passed too!!!!



That's me finished now with the written exams, just got CA2 now to do in order to qualify!

 

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