SOA’s Models for Financial Economics (MFE) Exam and CAS’ Exam 3F: Preparation materials
MFE 3F: Financial Economics Segment of Society of Actuaries EXAM M/ 3F of CAS
The following free courses on FinanceTrainingCourse.com cover various topics outlined in Society of Actuaries Learning Outcomes for Exam MFE, the Financial Economics Segment of Exam M and the CAS 3F exam. They provide supplementary prep materials for some of the more difficult concepts covered in the course.
As part of your preparation for your final attempt you have been looking for anything that can provide the extra edge for your MFE / 3F attempt. While the material below was not prepared keeping the SOA curriculum in mind it takes a hands on excel based approach in illustrating the many concepts covered in the SOA MFE /CAS 3F exams. Our hope is that this extra bit will clear the final muddle about those elusive Stochastic calculus, Continuous Time Finance, Option Greeks & Delta hedging concepts that you had been struggling with.
The links below covers interest rate models (CIR and BDT), Binomial Trees, Black Scholes Model, Pricing Derivative securities, differentiating between N(d1) and N(d2), exotic product and options, interpreting Greeks, Delta Hedging, investment and portfolio management concepts and other related topics.
Please note that the material below does not include treatment for :
- Vasicek bond price model
- Ito’s Lemma
- Derivation of the Black Scholes equation
- Theoretical background around the many theorems that build the foundation for Black Scholes Analysis
SOA MFE / CAS 3F Exam Prep – Interest Rate models
SOA MFE/ CAS 3F: Cox-Ingersoll-Ross interest rate model
We discuss the simplest of interest rate models, the Cox Ingersoll Ross interest rate simulator and review the model as well as the steps required in its calibration.
SOA MFE/ CAS 3F: Black-Derman-Toy interest rate model
A slightly different application is used to illustrate the construction and calibration of the one factor no arbitrage Black, Derman and Toy (BDT) model
SOA MFE / CAS 3F Exam Prep- Valuation of derivative securities
SOA MFE/ CAS 3F: Derivative Products
The following courses provided a detailed introduction to Options and Derivatives/ Options pricing. This material includes discussions on the put call parity , Black-Scholes option pricing model, Greeks, Exotics, etc.
SOA MFE/ CAS 3F: Calculate the value of European and American options using the binomial model.
This course focuses on an alternative method of implementing a two-dimensional binomial tree compared to the traditional method of building a binomial tree in excel presented in most option pricing text books. The alternate approach is based on the techniques documented by Professor Mark Broadie at Columbia Business School as part of his coursework in Security Pricing and Computational Finance courses at Columbia University and allows us to extend a simple 3 step tree to a 50 – 100 step option pricing tree in a few minutes.
The course starts with pricing European calls and put options, followed by pricing American options and closes by reviewing option pricing for Knock out and Knock in (Sudden Death). We also review the special case of a down and in option.
SOA MFE/ CAS 3F: Interpret option Greeks & Delta Hedging.
Monte Carlo Simulation SOA MFE/ CAS 3F: Simulate lognormal stock prices.
SOA MFE/ CAS 3F: Use variance reduction techniques to accelerate convergence
Risk Management Technique MFE/ 3F: Control risk using Delta-hedging
SOA MFE/ CAS 3F Exam Prep Related Paid Materials
Visit our Finance Course store to purchase pdf versions of these and other courses as well as video courses and detailed EXCEL examples as mentioned below:
- SOA MFE / CAS 3F Related Excel & PDF section of the store
- Delta Hedging – Dynamic Hedging – Option Greeks Guide
- Black Derman Toy Model Construction – EXCEL Example
- How to utilize results of a Black Derman Toy Model – EXCEL Example
- Derivative Pricing – Binomial Trees – EXCEL Example
- Calibration of CIR Model – EXCEL Example
- Cox-Ingersoll- Ross (CIR) Interest Rate Model – EXCEL Example
- Monte Carlo Simulation – Commodity – Example
- Monte Carlo Simulation – Currency – Example
- Monte Carlo Simulation – Equity – Example
- Monte Carlo Simulation- Variance Reduction procedures- EXCEL examples
- Valuing Options – Black Scholes Example
- Valuing Options – Binomial Tree Example – Traditional Approach
SOA MFE/ CAS 3F: Video Courses (Paid for courses with free samples)
- Option Pricing using Monte Carlo Simulation
- Option pricing using binomial trees
- Understanding N(d1) and N(d2)
- Derivative Products – Detailed Course Description
- Derivatives Terminology Crash Course – Detailed Course Description
- How to construct a Black Derman Toy Model in EXCEL
- How to utilize results of a Black Derman Toy Model
SOA MFE/ CAS 3F: PDF courses (Paid for courses – easy to read pdf versions of online course materials)
Understanding Delta Hedging & Greeks – Technical Interview Guide
Till November 30th, take $60 off the cover price when you order your electronic copy. The package include a 71 page study guide and 3 supplementary Excel Spreadsheets that focus on Monte Carlo Simulation of Dynamic Delta Hedging, Calculation of Cash PnL & Dissection of Option Price Sensitivities (Greeks).
Learn more about the title through the Delta Hedging & Greeks Book launch post.