I started Derivatives yesterday. This section is dangerous, especially if you've never seen this material before because it really is a lot for only 5%(12 questions) on the exam. If you've never studied futures, forwards or options before it takes some time to get used to and you can really burn a lot of valuable study time trying to learn this material. I was lucky enough to take a course in options and futures in my grad program so a lot of this was 2nd nature to me although I did have to refresh myself. I would suggest focusing on the following core concepts before trying to master every little detail

- FRA's, just know the calculation which isn't hard to understand. Memorizing it is a bad idea, easier if you understand what the formula does
- Characteristics of Futures vs Forwards vs Options and what the benefits/drawbacks are to each. You know the CFAI loves to test on these.
- Know the future margin calculations. Garanteed to get at least one of these on the exam.
- Know the Max and Min Values of Euro vs American Options.
- Know Max Loss, Max Gain and Breakeven of all option scenarios(Buy/Sell Call etc)
- Swaps - it's easiest if you draw a diagram to get the relationships down. This material is actually very easy, although it threw me for a loop when I studied it in class.

If you know those core concepts you're probably good to go on this section. I will do one last review and take notes on this section tomorrow and then leave it for later.

The only thing left to cover is Alternative Investments which I'll wait until the last Stalla lecture next week to cover. I've been reviewing Quant up to now, will finish that tomorrow and start Econ on Sunday. I've decided to shift the mock exams until next weekend, I really want to get a good FSA review in before I take another one.