# Free Tools for Rational Education

# The Actuary's Free Study Guide for

# Exam 3F / Exam MFE

Study Methods for Actuarial Exam 3F / Exam MFEA Comprehensive List of Free Study Materials for Exam 3F / Exam MFE

A Comprehensive List of Free Study Materials for Exam 3F / Exam MFE: Part 2

Section 1: Put-Call Parity

Section 2: Parity of Stock Options

Section 3: Conversions and Reverse Conversions

Section 4: Parity of Options on Currencies

Section 5: Parity of Options on Bonds

Section 6: Generalized Put-Call Parity

Section 7: Classification of Calls and Puts

Section 8: Maximum and Minimum Option Prices

Section 9: Early Exercise on American Options

Section 10: Option Prices and Time to Expiration

Section 11: Option Prices for Different Strike Prices

Section 12: Strike Price Convexity

Section 13: Exam-Style Questions on Put-Call Parity and Arbitrage

Section 14: More Exam-Style Questions on Put-Call Parity and Arbitrage

Section 15: One-Period Binomial Option Pricing

Section 16: Risk-Neutral Probability in Binomial Option Pricing

Section 17: Constructing Binomial Trees for Option Prices

Section 18: Multi-Period Binomial Option Pricing With Recombining Trees

Section 19: Binomial Option Pricing With Puts

Errata for Section 19, Problems BOPWP4-5

Section 20: Binomial Option Pricing With American Options

Section 21: Binomial Pricing for Currency Options

Section 22: Binomial Pricing for Options on Futures Contracts

Section 23: Exam-Style Questions on Binomial Option Pricing

Section 24: More Exam-Style Questions on Binomial Option Pricing

Section 25: Volatility and Early Exercise of American Options

Section 26: Comparing Risk-Neutral and Real Probabilities in the Binomial Model

Section 27: Option Valuation Using True Probabilities in the Binomial Model

Section 28: The Random Walk Model

Section 29: Standard Deviation of Returns and Multi-Period Probabilities in the Binomial Model

Section 30: Alternative Binomial Trees

Section 31: Constructing Binomial Trees With Discrete Dividends

Section 32: Review of Put-Call Parity and Binomial Option Pricing

Section 33: The Black-Scholes Formula

Section 34: The Black-Scholes Formula Using Prepaid Forward Prices

Section 35: The Black-Scholes Formula for Options on Stocks With Discrete Dividends

Section 36: The Garman-Kohlhagen Formula for Pricing Currency Options

Section 37: The Black Formula for Pricing Options on Futures Contracts

Section 38: Exam-Style Questions on the Black-Scholes Formula

Errata for Section 38: Problem ESQBSF5

Section 39: Option Greeks: Delta

Section 40: Option Greeks: Gamma and Vega

Section 41: Option Greeks: Theta, Rho, Psi, and Greek Measures for Portfolios

Section 42: Option Elasticity and Option Volatility

Section 43: The Risk Premium and Sharpe Ratio of an Option

Section 44: The Elasticity and Risk Premium of an Option Portfolio

Section 45: Calendar Spreads and Implied Volatility

Section 46: Exam-Style Questions on Option Elasticity, Option Volatility, and the Black-Scholes Formula

Section 47: The Delta-Gamma Approximation

Section 48: The Delta-Gamma-Theta Approximation

Section 49: The Black-Scholes Partial Differential Equation

Section 50: The Return and Variance of the Return to a Delta-Hedged Market-Maker

Section 51: Exam-Style Questions on Market-Making and Delta-Hedging

Section 52: Asian Options

Section 53: Barrier Options

Section 54: Compound Options

Section 55: Pricing Options on Dividend-Paying Stocks

Section 56: Gap Options

Section 57: Exchange Options

Section 58: Exam-Style Questions on Exotic Options

Section 59: The Basics of Brownian Motion

Section 60: The Basics of Geometric Brownian Motion

Section 61: The Basics of Mean Reversion Processes

Section 62: The Basics of Ito's Lemma

Section 63: Probability Problems Using Arithmetic Brownian Motion

Section 64: Probability Problems Using Geometric Brownian Motion

Section 65: Sharpe Ratios of Assets Following Geometric Brownian Motions

Section 66: Another Form of Ito's Lemma for Geometric Brownian Motion

Section 67: Multiplication Rules and Exam-Style Questions for Brownian Motion and Ito's Lemma

Section 68: Conceptual Questions on Brownian Motion

Section 69: More Exam-Style Questions on Ito's Lemma and Brownian Motion

Section 70: The Vasicek Interest Rate Model

Section 71: Exam-Style Questions on the Vasicek Interest Rate Model

Section 72: The Cox-Ingersoll-Ross (CIR) Interest Rate Model

Section 73: The Black Formula for Pricing Options on Bonds

Section 74: Forward Rate Agreements and Caplets

Section 75: Interest Rate Caps and Pricing Caplets Using the Black Formula

Section 76: Binomial Interest Rate Models

Section 77: Basics of the Black-Derman-Toy (BDT) Interest Rate Model

Section 78: Pricing Caplets Using the Black-Derman-Toy (BDT) Interest Rate Model

Section 79: Determining Yield Volatilities and the Basics of Constructing Binomial Trees in the Black-Derman-Toy (BDT) Interest Rate Model

Section 80: Equity-Linked Insurance Contracts

Section 81: Historical Volatility

Section 82: Applications of Derivatives, the Garman-Kohlhagen Formula, and Brownian Motion to International Business Contracts

Section 83: Valuing Claims on Derivatives Whose Price is the Underlying Asset Price Taken to Some Power

Section 84: Assorted Exam-Style Questions for Exam 3F / Exam MFE

Section 85: Yield to Maturity of an Infinitely Lived Bond in the Vasicek Model

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