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Derivatives - Abandonment Option
AFM
answered on 14-May-24 11:30
Hello Sir, Normally Black Scholes Formula is used only for European Options right? This question contains an option to get out of venture anytime, which is like American Option, You have also mentioned the same in the video. Can you please clarify why do we still use Black Scholes Formula?
latest answer
Have added the point we discussed in the video - thanks once again
Susee Arunachalam
Qualified CA
★ 26K+
3
243
Merger
AFM
answered on 01-Apr-24 13:15
Sir how the exchange ratio in part ii is 5:6 ? Also pre merger eps of B is 6 right?? So post merger should also be 6...why did we calculated 5?
latest answer
Shareholders of B have got 6 shares of A for 5 shares of B so they have got 1.2 shares of A for 1 share of B, implies that their effective EPS post-merger per share of B is 1.2 × 5 Have explained this in class - even though the EPS of combined entity is 5, Share holders of B got 1.2 shares in combined entity for every share of B s0 effectively their EPS is 5 X 1.2 = 6
nazriya nasar
CA Final
★ 7K+
1
432
Replacement Decision
AFM
answered on 01-Apr-24 13:21
I have prepared an alternative answer for the question attached herein, please confirm whether my answer is correct or not,
latest answer
Please go through the video have explained in depth
Ranjith Shettigar
CA Final
★ 1K+
4
572
Debt fund Nav interest
AFM
answered on 01-Apr-24 10:31
Sir, here the coupon date is the date of issue, and details of july date given, dats y 3months interest taken , am i ri8 sir? can u pls mention the chap where macaulay duration is taught. i started with mutual funds chap And also, is it okay to start portfolio chap after this without learning security valuation
latest answer
ok sir Thanks
Anjana K S
CA Final
★ 8K+
2
218
Regarding 1FIN
AFM
answered on 01-Apr-24 04:51
Sir, 1 thing I like about 1 FIN is that concept wise videos segregated. So, I always can go back and watch when required of what I required. Suggestions/Improvements if not thought till now. 1. If you provide a note pad against each video students like us can write simultaneously important or things to be remembered stuff. 2. If we can highlight the video time itself and write notes on would be great. 3. All student doubts and answers if can be seen at each video level itself would help us understand, the things we missed to question and get answers.
latest answer
Thanks a lot for the suggestions & feedback. We will check the tech feasibility of these and consider them in future.
Vanacharla Sai Pavan Kumar
CA Final
★ 8K+
1
604
NAV 31.3.18
AFM
answered on 31-Mar-24 18:49
Sir, Why 1lac was added to return of 202180.i understood the calc of annual return but was not able to catch up with the closing value calculation
latest answer
Thanks sir understood
Anjana K S
CA Final
★ 8K+
2
251
Q-49, Depreciation and Appreciation of Rupee
AFM
answered on 02-Apr-24 12:05
Sir, while calculating the real app or dep of rupee of ask price, should not it be 1.0305/1.0381-1= -0.73%?
latest answer
This correction has been made- thanks once again for highlighting
Venky Balamurali
Qualified CA
★ 0
2
249
TOTAL NO.OF CONTRACTS
AFM
answered on 31-Mar-24 15:46
Sir as per 3rd part of this question, the investor should short 13.342 Nifty futures contract and in the 4th part to reduce this beta of the portfolio to 0.6 we are shorting 3.91 Nifty futures contract. So my Doubt is whether in 4th part we are shorting additional contracts of 3.91 to that of 13.34? And another doubt is that in question the Given value e^(rt) is 1.01598, and this value is arrived only when we use 55 days for the calculation.
latest answer
Part 3 is full hedge for which 13.34 contracts need to be shorted beta will become zero Part 4 is 3.91 - this is for reducing beta to 0.6 Both are diff and 3.91 is not after 13.34. 3.91 is independent and 13.34 is independent as explained above - both are diff scenarios Jan 1 to feb 28 shoudl be 59 days - but they gave value for 55 days - if a value is given in problem consider it. May be settlement date for feb is not 28 but 24 due to holidays / weekend etc who knows
Mohanbabu N
CA Final
★ 3K+
1
246
Doubt regarding Ke
AFM
answered on 31-Mar-24 06:36
Sir, why are we considering Ke of target company instead of acquirer.
latest answer
Disc factor changes based on project - for risky projects one takes higher disc rate same way in acq - if target is growing very fast it will have a higher disc rate - hence its ke is used
Vanacharla Sai Pavan Kumar
CA Final
★ 8K+
1
418
Derivatives - Maintenance Margin
AFM
answered on 31-Mar-24 16:56
Hello sir, Please clarify on this In Ill.14, we calculated Maintenance margin on % of Initial Margin as given clearly in the question. In Ill.27, We calculate Maintenance margin on % of Everyday closing values, as only % in the question. Unless given in the question, should we always calculate Maintenance margin on closing values of everyday price? Do we need to make an assumption or it is the normal practice and no assumption is needed?
latest answer
Okay sir, Thank you so much!
Susee Arunachalam
Qualified CA
★ 26K+
2
476