If I'm not wrong, I remember that there was some discussions regarding arranging the study materials in topic-wise instead of the AIM based order. Any updates regarding that?
@Steve Jobs, I know this was discussed previously, however this will not be implemented this year. In order to order them topic wise, it will require much more time and efforts. If we decide to implement the above, we will definitely announce it on the forum. Thanks, Suzanne
Steve - if you want my candid view, given GARP's methodology (i.e., sourcing questions first from practitioners with a secondary vet against the AIMs, and with unclear rigor) it would be superior to organize by topics. The challenge is that many (not all) candidates appear to want organize by the AIMs; understandably since GARP publishes them. Put another way, it's the difference between "buying criteria" (what people think they want) and what's actually good for them. It's also discussion we had earlier this week with GARP: my position is that GARP creates a bit of a problem by issuing detailed, granular AIMs yet administering the exam with a primary lean on practitioner sources (I cited the CFP as one end of the spectrum: the CFP issues a set of concepts without granular, AIM-like specifics. The CFA would be at the other end of the spectrum, except the CFA has far more rigor to its LOs, than the FRM to its AIMS). I told them the most common question we get is, "will this [something] be tested on the exam?" But given the AIMs are more like guidelines than definitive references (and, in some cases, lacking internally consistency due to various authors), the most honest answer I should give most of the time is, I can't know. Which has some advantages. But makes review by concept arguably more appropriate.
Hi David, thanks for your efforts in discussing it with GARP. I find the range of materials very broad and topics overlapping to the extent that I can't study and understand without first rearranging the topics. For section 3 of part 1, I categorized the topics into the below categories. Even more, I also categorized the practice question of each topic into Subtopic determined by myself(instead of AIMs) so that I can review all the question of each Subtopic together. Let me know if you guys have any remarks? Have you done any thing similar before? Category No. Topic Sub-Topic Forward Rates 24 Determination of Forward and Futures Prices Forward Price - Commodity/Stock Forward Price - Currency Forward Contract Value Arbitrage Profit Cost of Carry Contango-Backwardation 29 Fundamentals of Commodity Spot and Futures Markets: Instruments, Exchanges and Strategies Trading Futures Risks in Trading Futures Delivery Arrangements Hedge Effectiveness Arbitrage: Theory 30 Commodity Forwards and Futures Cash and Carry Ex. Forward Price Calc. Forward Price Curve Other Commodity Spread Stack and Roll Basis Risk Contango-Backwardation Futures Trading 21 Mechanics of Futures Markets Arbitrage Profit Maintenance Margin Diff. btwn Long & Short Positions Futures Contract Characteristics Clearing House Order Types 22 Hedging Strategies Using Futures Exposure to Basis Risk Hedge Ratio Beta Tailing the Hedge Buy Short or Long Futures? Overall profitability of hedging Bonds 23 Interest Rates Discrete to Continuous Annual Continuous to Discrete Bond Price Bond Yield Bootstrapping Spot Rates FRA Payoff Forward Rates Convexity Spot Rates(Annual Compounding) Theories 25 Interest Rate Futures Bond - Accrued Interest Bond - Cash Price TBill - Quoted & Cash Price CTD Duration-Based Hedge Arbitrage FRA Euro-Dollar 32 Corporate Bonds Trustee Responsibilities Investment banks Responsibilities Claim Amount on Bankruptcy Equipment Trust Bonds The Call Option for Bonds Credit Risk(Default, Spread) Rating Event Risk Income Bonds Other 20 Introduction (Options, Futures, and other Derivatives) Options: Pay off and Profit Forward Contracts: Pay off Exposure & Hedging Futures Payoff (and Margin) Speculation with Futures Speculation with Options Arbitrage Difference between Futures and OTC Derivatives Market Maker 26 Swaps Interest Swap Value: Bond Interest Swap Value: FRA Currency Swap Value: Bond Currency Swap Value: FRA Comparative Advantage Currency Swap: Theory Interest Swap: Theory Other Types of Swaps 31 Foreign Exchange Risk Currency Exposure - No Hedging Currency Exposure - Hedging Net Asset-Laibility:Theory Interest Rate Parity (IRP) To be studies with other sections of part 1 Section 1 33 The Rating Agencies Section 4 27 Properties of Stock Options 28 Trading Strategies Involving Options
