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Shouldn't the Rf rate be monthly rate?
AFM
answered on 07-Jan-25 13:33
In the solution we have taken annual Rf rate and monthly dividend rate. Should it not be monthly rate for Rf. If not please explain as to why we have taken annual rate for Rf.
latest answer
Dividend rate is 3% PA We are not taking 4 months dividend rate. we are computing average dividend rate over 4 months Even that number is a pa number RF rate is same at 8% pa for every month We finally adjust for 4 months by multiplying with 4/12
Manu Jacob
CA Final
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1
242
Futures
AFM
answered on 07-Jan-25 09:42
Ram buys 10,000 shares of X Ltd. at a price of ₹ 22 per share whose beta value is 1.5 and sells 5,000 shares of A Ltd. at a price of ₹ 40 per share having a beta value of 2. He obtains a complete hedge by Nifty futures at ₹ 1,000 each. He closes out his position at the closing price of the next day when the share of X Ltd. dropped by 2%, share of A Ltd. appreciated by 3% and Nifty futures dropped by 1.5%. What is the overall profit/loss to Ram? In this Qn, there is no information about his position on NIFTY futures, Can we solve it assuming he took short position as Nifty futures dropped by 1.5% unlike the class material where we took long position resulting in loss?
latest answer
Yes
Durai Murugan
CA Final
★ 470
3
1K+
short sale dividend
AFM
answered on 06-Jan-25 20:14
sir when we made short position ,shall we need transfer dividend at the end of contract? if yes in this problem can we adjust the dividend we received on shares bought from borrowed funds shall be adjusted !
latest answer
Yes we are doing it at minute 10 right?
Bhanu VishnuMolakala
CA Final
★ 90
1
867
Doubt on merger
AFM
answered on 06-Jan-25 18:24
What does true cost of merger means
latest answer
Any excess payment to seller
Edwin jees
CA Final
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764
Scenario Analysis
AFM
answered on 06-Jan-25 15:15
Sir, Suppose if in this question, Estimated salvage value after tax is Rs,60,000 where years1-5 cash flows is Rs.1,00,000 and Rs.20,000 where years 1-5 cash flows is Rs.1,20,000 , which will be the best case and worst case?
latest answer
Thank you sir
Lekshmi N.Kumar
CA Final
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2
997
Derivatives-Future
AFM
answered on 07-Jan-25 01:40
In this Qn, is it assumed that a trader has long position in his portfolio as well as his overall loss amounts to Rs. 4.72 lakhs
latest answer
Thankyou sir
Durai Murugan
CA Final
★ 470
2
1K+
Calculation
AFM
answered on 05-Jan-25 17:02
Sir, Rf is 8% na, we took 9 in our calculation.
latest answer
Wrong number shown by mistake on screen When we converted Nov 24 q paper from Pdf to word this happened Pls check Nov 24 paper for actual values Thanks for highlighting, will get it corrected soon
Hrishikesh Pradhan
Qualified CA
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1
986
Valuation of security
AFM
answered on 04-Jan-25 20:24
For what purpose we are deducting pv of dividend in current market price to get excepted market price
latest answer
P0 = sum of pv all future dividends from year 1 to infinity P7 = sumo of pv of all dividend from 8 year till infinity => p7 = p0- pv of dividends from year 0 to 7
Sentoor Kumaran
CA Inter
★ 3K+
1
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dividend or yield
AFM
answered on 10-Apr-25 09:20
sir is there any assumption of taking any FV of index(like face value for stock) in calculation of dividend/yield.
latest answer
Yes of course
Bhanu VishnuMolakala
CA Final
★ 90
3
281
Forex
AFM
answered on 04-Jan-25 20:25
Sir, while doing currency option contract how will we know if the option is exercised or not ? If question is silent about expected spot rate ,but has the forward rate.
latest answer
We compare spot on maturity rate vs strike that is what is an option If exact spot is not know then expected spot is used
R M
ACCA Professional
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