SS15 - Finally realized if you try to memorize formulas in this SS you lose

When I first went through the material, I was wondering how I could possibly memorize all of those formulas. Then I realized that I don’t have to!! Diagrams and Tables are your friends on this one. What a difference!!!

these will most likely be in PM and thus MC…so you can just “back” into the answer if you know the basics.

no need to memorize all of the formulas - just use common sense

A simple formula like “Profit = Payoff - Premium” and a Graph can help me a lot. Although it may not be the fastest way, it can be good enough in most of the time.