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AFM

answered on 24-Apr-24 10:45

Hello Sir In this question if we consider the net cash settlement in Selling put option strategy- we will have a loss of 145.2-144.9 which is 0.3 Yen/USD which will total to 0.3 million Yen. Premium receipt of 2.53 million. Now when we buy 1 million USD @ ask rate 145.05. So total payment is 145.05-2.53+0.3= 142.82. But institute has considered taking delivery. How should we decide whether to take delivery or settle in cash?

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Good point - if options are OTC, only then delivery is possible. If options are exchange traded, then only Net cash settlement. In exam suggest you take both scenarios and explain the same and give solutions as per both options with assumptions clearly stated

Suresh Avinash

Suresh Avinash

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MTP Series ii - Mutual Funds Q

AFM

answered on 22-Apr-24 18:23

Question - 5(b) of AFM MTP Series ii Please explain the logic of using NPV to compute effective yield and how the PV of cash inflows have been calculated in computing NPV

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Thank you sir, very well explained.

Vish

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Macaulay's Duration

AFM

answered on 22-Apr-24 15:34

Here at the end of the year , we are multiplying the cashflows with year and then discounting with PVF, got 464.65 . In the previous illustration 1, we are compounting bond period by multiplying propotionate value with no of years.. Please clarify why we are doing so

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Both are same are they not? can you please put it down ( that is both methods) on an excel sheet or a piece of paper have a look for say a 2 year bond instead of a 5 or 7 year bond?

Rahul Kumar

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MCQ

AFM

answered on 28-Apr-24 07:14

As told in vedio, How to access mcq separately for purchased classes, because before purchasing AFM also i was able to access afm mcq section, is there any separate mcq provided for paid version

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Ok sir

R Yashwanth Kumar

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447

page 175 - is answer is correct

AFM

answered on 21-Apr-24 21:30

In the Part two of the question is not multiplied by r. is it correct question 14 part ii

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solved, it was my mistake

ezy pan

ezy pan

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Forex

AFM

answered on 21-Apr-24 11:04

I didn't understood Why the rates are different??

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1.02 cents cent is 1/00th of a dollar so 1.02 cents in dollar terms = 1.02/100 = 0.0102

nazriya nasar

nazriya nasar

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Free class till May 24 exam

AFM

answered on 20-Apr-24 17:15

Dear, please provide free classes for fr,AFM & IDT till May 24 exams in this app.please provide it is great help for may 24 students

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Regret we have no such plan - pls watch our free revision videos

Raja Saiteja

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369

Beta of debt

AFM

answered on 20-Apr-24 17:21

Beta of debt for 290 crores is 0.45 . How it is arrived sir ?

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last line of question says Assume that the present Debt Beta (β_D1) is 0.45 and any further funds raised by way of Debt will have a Beta (β_D2) of 0.50.

Gogul kannan seshadri

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combined portfolio

AFM

answered on 20-Apr-24 07:54

wat purpose of combined portfolio or use or view point of combined portfolio?

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If we have two portfolios on efficient frontier, you need a different one excluding or including a stock or by increasing the weights of a specific stock you can create using this

Hariharan S

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Portfolio Management

AFM

answered on 19-Apr-24 19:23

Sir, In Illu:57 for computing beta why are we specifically using sharpe model and not other formulas. Kindly clarify it sir .

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Ok sir. Thank you

Guru aravindh s

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