2017 SchweserNotes™
Exam Prep
Financial Markets
and Products
eBook 3
®
I(APLAN\ SCHOOL OF PROFESSIONAL
UNIVERSITY
) AND CONTINUING EDUCATION
SCHWESER
Getting Started
Part I FRM® Exam
Welcome
As the Vice President of Product Management at Kaplan Schweser, I am pleased to have
the opportunity to help you prepare for the 2017 FRM® Exam. Getting an early start on
your study program is important for you to sufficiently Prepare Practice Perform®
on exam day. Proper planning will allow you to set aside enough time to master the
learning objectives in the Part I curriculum.
Now that you’ve received your SchweserNotes™, here’s how to get started:
Step 1: Access Your Online Tools
Visit www.schweser.com/frm and log in to your online account using the button
located in the top navigation bar. After logging in, select the appropriate part and
proceed to the dashboard where you can access your online products.
Step 2: Create a Study Plan
Create a study plan with the Schweser Study Calendar (located on the Schweser
dashboard). Then view the Candidate Resource Library on-demand videos for an
introduction to core concepts.
Step 3: Prepare and Practice
Read your SchweserNotes™
Our clear, concise study notes will help you prepare forthe exam. At the end
of each reading, you can answer the Concept Checker questions for better
understanding of the curriculum.
Attend a Weekly Class
Attend our Live Online Weekly Class or review the on-demand archives as often
as you like. Our expert faculty will guide you through the FRM curriculum with
a structured approach to help you prepare forthe exam. (See our instruction
packages to the right. Visit www.schweser.com/frm to order.)
Practice with SchweserPro™ QBank
Maximize your retention of important concepts and practice answering exam-
style questions in the SchweserPro™ QBank and taking several Practice Exams.
Use Schweser’s QuickSheet for continuous review on the go. (Visit
www.schweser.com/frm to order.)
Step 4: Final Review
A few weeks before the exam, make use of our Online Review Workshop Package.
Review key curriculum concepts in every topic, perform by working through
demonstration problems, and practice your exam techniques with our 8-hour live
Online Review Workshop. Use Schweser’s Secret Sauce® for convenient study on
the go.
Step 5: Perform
As part of our Online Review Workshop Package, take a Schweser Mock Exam
to ensure you are ready to perform on the actual FRM Exam. Put your skills and
knowledge to the test and gain confidence before the exam.
Again, thank you fortrusting Kaplan Schweser with your FRM Exam preparation!
Sincerely,
Ptrek.
Derek Burkett, CFA, FRM, CAIA
VP, Product Management, Kaplan Schweser
The Kaplan Way for Learning
Acquire new knowledge
through demonstration
and examples.
A
PRACTICE
Apply new knowledge
through simulation
and practice.
PERFORM
Evaluate mastery of new
knowledge and identify
achieved outcomes.
FRM® Instruction Packages:
> PremiumPlus™ Package
> Premium Instruction Package
Live Instruction*:
Remember to join our Live Online Weekly Class.
Register online today at www.schweser.com/frm.
May Exam Instructor
Dr. John Broussard
CFA, FRM
November Exam Instructor
Dr. Greg Filbeck
CFA, FRM, CAIA
*Dates, times, and instructors subject to change
Contact us for questions about your study package, upgrading your package, purchasing additional study materials, or for additional information:
www.schweser.com/frm | Toll-Free: 888.325.5072 | International: +1 608.779.8397
FRM Part I B ook 3:
F
inancial Markets and Products
R ea ding Assig nment s and Lea r ning O bjec t iv es v
F in a n c ia l Markets and Products
31: Banks 1
32: Insurance Companies and Pension Plans 10
33: Mutual Funds and Hedge Funds 24
34: Introduction (Options, Futures, and Other Derivatives) 40
33: Mechanics of Futures Markets 56
36: Hedging Strategies Using Futures 68
37: Interest Rates 80
38: Determination of Forward and Futures Prices 96
39: Interest Rate Futures 109
40: Swaps 123
41: Mechanics of Options Markets 140
42: Properties of Stock Options 155
43: Trading Strategies Involving Options 167
44: Exotic Options 183
45: Commodity Forwards and Futures 194
46: Exchanges, O TC Derivatives, DPCs and SPVs 215
47: Basic Principles of Central Clearing 225
48: Risks Caused by CCPs 236
49: Foreign Exchange Risk 243
50: Corporate Bonds 257
51: Mortgages and Mortgage-Backed Securities 270
Self-Test : F in a n c ia l Markets and P roducts 296
Formulas 305
Index 309
©2017 Kaplan, Inc.
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