Description of Manual - Exam MFE/3F

This manual offers comprehensive coverage of the syllabus for Exam MFE/3F. In its 20 lessons, the following topics are reviewed:

• Put-call parity
• Binomial trees
• Modeling stock prices with the lognormal distribution
• The Black-Scholes formula
• Exotic options
• Monte Carlo valuation
• Brownian motion and Ito’s lemma
• Interest rate models, including the Black-Derman-Toy model

The 6th edition has about 680 pages, 117 examples, 90 in-lesson exercises and about 400 end-of-lesson exercises, all with complete solutions.  Also, the manual has 11 original 25-question practice exams (an additional 275 questions), with detailed solutions. While this manual will be adequate for Exam MFE/3F, the McDonald textbook is referenced in each lesson if you wish to use it.

for Fall 2009

New syllabus material moved from Exam C/4 is included in the text, and the practice exams have been expanded to include this material. Solutions to the SOA sample exams have been added, and additional material covering some of the topics in those questions has been added to the text. Corrections of errata have been incorporated.

Description of Manual -
Supplement to 4th and 5th Editions of Exam MFE/3F Manual

This supplement is for owners of the 4th and 5th editions of the MFE/3F manual. If you have the 6th edition, you do not need this supplement.

This supplement includes the syllabus material from Exam C/4 for the Fall 2009 sitting:

• Modeling stock prices with the lognormal distribution
• Monte Carlo valuation

In addition, the supplement includes:

• Solutions to the SOA sample questions
• A set of supplemental questions. These questions were added to the practice exams of the 6th edition and most of them cover the moved material.

Author’s Background:
Abraham Weishaus, Ph.D., F.S.A., CFA, M.A.A.A.

Formerly financial reporting actuary for Guardian Life Insurance Company. Served on the SOA’s Education and Examination Committee for 11 years. Taught exam preparation courses for the Actuarial Society of Greater New York (ASNY) for 15 years.  Teaches exam preparation courses at St. John's University and seminars for CAMAR.