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Calculation
AFM
answered on 09-Jan-25 09:36
Sir, we solved this question but I did not understood in sub question 3, why did we squared the weights because the formula is covariance × weight of A and weight of B
latest answer
Var
Hrishikesh Pradhan
Qualified CA
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363
Excel sheet in Chapter -2 - Risk Management
AFM
answered on 09-Jan-25 09:35
The excel sheet provided in second chapter (Risk management) is protected. Kindly provide the password for the same.
latest answer
All our spreadsheets are password protected as these are our IP Regret cannot share passwords
Priyanka K
CA Final
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1
237
Option - American & European
AFM
answered on 08-Jan-25 17:48
If not mentioned in 2 period binomial questions, should we assume it to be European?
latest answer
Yes
Durai Murugan
CA Final
★ 470
1
244
Option -Risk neutral probabilities
AFM
answered on 08-Jan-25 16:17
How many decimal points are advisable when using P = (e^rt-d)/u-d ? If no need to present u and d separately, can we solve directly by Su(P)+So(1-P)=Current spot*e^rt?
latest answer
Decimal points - pls consider 4 Yes you can solve using formula you mentioned
Durai Murugan
CA Final
★ 470
1
289
Do we have to compulsorily use continuous compounding method or can we use simple interest method as well?
AFM
answered on 08-Jan-25 13:28
Do we have to compulsorily use continuous compounding method or can we use simple interest method as well?
latest answer
If value of e is provided u have to use continuous compounding In real life that is what is used
Manu Jacob
CA Final
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308
Interpolation
AFM
answered on 07-Jan-25 22:15
When do we take yield to maturity rates differently (2 rates as trial), when one YTM rate is given in question already.
latest answer
Not sure what u r asking. Have not understood your query If one rate is given as say , then take another rate based on what is the NPV at x. If Nov is positive u take a higher rate and if NPV is negative u take a lower rate than x
Veena Avusula
CA Final
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323
Zero coupon bond
AFM
answered on 07-Jan-25 22:18
In this 10th illustration, why didn't we consider principal amount at the end of 10 year for calculating price of zero coupon bond
latest answer
Zero coupon bond is a bond in which the bond FV is returned at period end say 100 At time of issue the bond is issued at a discount say at 65 Over the bond period total interest is accrued and gets added to 65 of issue price every year
Veena Avusula
CA Final
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264
Immunization - WA Duration
AFM
answered on 02-Jun-26 13:04
Hi sir, i'm unable to understand, the weighs - 40.87% & 59.13%
latest answer
Understood Sir👍
Chakri simhadri
CA Final
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302
Why cant we take 0.0333 as 0.03?
AFM
answered on 07-Jan-25 18:33
Why cant we take 0.0333 as 0.03? So that we can directly take e^0.03=1.03045? Is it wrong to do this way?
latest answer
It is not wrong but expectation of accuracy by evalutors Most evaluators will not give u marks if u do that
Manu Jacob
CA Final
★ 6K+
1
260
Futures - Arbitrage
AFM
answered on 07-Jan-25 21:44
In ILL 18, "50% of the stock including INDEX shall pay dividend in next 6 months." . What does it mean? Is 50% referring to time i.e 6 months or the portion of Index that pays out dividend? If it refers to 6 months, then the query is resolved. But if it represents the portion of Index, Dividend is calculated for per annum and not for 6 months for Fair value and Gain from arbitrage
latest answer
Thankyou sir
Durai Murugan
CA Final
★ 470
4
296