For reading #37 and the various option strategies that are shown, Schweser advises “do not take the time to memorize the equations for profit, maximum profit, maximum loss, et. cetera, for any of the options strategies unless you honestly feel you have the time” Is this an advisable strategy? If so, I plan to avoid doing all the math for the corresponding EOC questions and just focusing on the what options to buy or sell for each strategy.
Can any of the retakers/people who have passed advise what their strategy was and if it would be wise to not memorize the formulas for these all together.
Although I don’t agree with much of anything Schweser has to say in Level III, I think this is correct advice. You are more likely to be called upon to calculate the desired result and less likely to show the formula. Among the folks I studied with, the consensus was that you needed to have the visual image in your head. And if you think about it, that’s typically how it goes with all the levels – it’s the concept they test, not the formula.
dont memorize the formula, understand it (i.e. logical consequences) – in cpa exams we do not memorize formulas coz if we understand the relationships (consequences), we can reconstruct the formula.