ASM MFE Study Manual for the Exam MFE/3F, 8th Edition

This manual offers comprehensive coverage of the syllabus for Exam MFE/3F. In its 26 lessons, the following topics are reviewed:Put-call parityBinomial treesModeling stock prices with the lognormal distributionThe Black-Scholes formulaExotic optionsMonte Carlo valuationBrownian motion and Ito's lemmaInterest rate models, including the Black-Derman-Toy modelThe 8th edition has about 810 pages, 120 examples, 90 in-lesson exercises and about 450 end-of-lesson exercises, all with complete solutions. Also, the manual has 11 original 30-question practice exams (an additional 330 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.In the 8th edition the material on Brownian motion and Ito's lemma has been reorganized and broken down into smaller units to aid learning and comprehension. As a result, the manual has 6 lessons more than the previous edition. In addition, solutions to the new SOA sample questions have been added, and the number of questions on each of the 11 practice exams has been increased from 25 to 30 (and the time allowed from 2.5 to 3 hours), to conform to the new CBT format for the 2011 exams. Also, corrections of all errata as of the publication date have been incorporated.