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 7th edition has about 720 pages, 120 examples, 90 in-lesson exercises and about 450 end-of-lesson exercises, all with complete solutions.  Also, the manual has 12 original 25-question practice exams (an additional 300 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 Spring 2010

Additional Brownian motion questions were added to the practice exams so that the distribution of topics is similar to the released Spring 2009 exam. As a result, there is now one additional practice exam, for a total of 12.  Solutions to the new sample questions posted by the SOA and solutions to the Spring 2009 exam have been added to the 7th edition.  Also, corrections of all known errata have been made.

Description of Manual -
Supplement to MFE/3F Manual

This supplement consists of the syllabus material that was moved from Exam C/4 for the Fall 2009 sitting, supplemental problems on the moved material, solutions to the SOA sample questions 1 to 60 and solutions to the Spring 2009 exam.  If you have the 6th or 7th edition (or the 4th or 5th edition and the Fall 2009 supplement), you do not need this supplement:  You can download the material that was added to the 7th edition by visiting www.aceyourexams.net.  This supplement is intended for students who have the 4th or 5th edition of the primary manual but who do not have the Fall 2009 supplement.  The author recommends that you buy the 7th edition if you have the 3rd or a prior edition.

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 and for CAMAR for 6 years.  Currently teaches exam preparation courses at St. John's University.