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illustration 5
AFM
answered on 29-May-26 13:55
sir one future contract is for delivery of 50 times the index, sir what it's actually means [Video Time Stamp: 03:49]
latest answer
Say nifty is at 1000 Then assume each contract is got 50 lots Then 1 nifty lot value is rs.1000 and contract value is rs. 50000 It represents what is the 1 futures contract value
saipriya v
CA Final
★ 510
1
78
Return
AFM
answered on 28-May-26 09:35
This 96% of Return, isn't it negative return since we loose money 100 @ a Probability of 70%? [Video Time Stamp: 19:31]
latest answer
No we are looking at investment as investment in Premia of option as that is the cash outflow for an option buyer Return is expected value For 35.71 you get back 70 Rerun is 96%
JANA KRISHNA K S
CA Final
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120
Premia - Equalised value
AFM
answered on 27-May-26 16:02
Sir, in part ii) in arriving equalised value of premia, the alternative way is to considered 9 months (AB Ltd) and 5 months (XY Ltd). Is it because the interest rate for the 1st 6 months is certain? If taken that way, then the PLR rate is also given for the next reset date i.e. rate applicable for next 6 months, then the alternate solution must be for 8 months and 4 months right? [Video Time Stamp: 08:39]
latest answer
Premium is paid at beginning of loan only
SANJITHA
CA Final
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3
82
Illustration 20
AFM
answered on 26-May-26 20:44
Sir, What is here mean by profit on her cash position [Video Time Stamp: 08:58]
latest answer
Yes exactly
Mhd Mmp
CA Final
★ 740
3
69
Illustration 6
AFM
answered on 25-May-26 13:08
Sir, while borrowing shares for short selling, is there any borrowing or other related charge that needs to be paid? Or, in this question, should we assume that no such charges are applicable? [Video Time Stamp: 23:30]
latest answer
In real life such charges exist Unless specified in question we cannot assume any such charges
Mhd Mmp
CA Final
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1
82
Nifty Short's Beta 1?
AFM
answered on 25-May-26 12:37
Sir i understood in Illustration #12 we are taking Nifty Short's Beta a (-1) but why in Illustration 11 we have taken (+1)
latest answer
Thank you sir understood
JANA KRISHNA K S
CA Final
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2
130
Future and forward pricing
AFM
answered on 24-May-26 14:02
sir in the example of spot price 220 ideal price 225.75 future price 230, whether it is in forward contract the person who buy he makes loss and the seller who makes profit of 4.25 is it correct [Video Time Stamp: 19:24]
latest answer
Yes
saipriya v
CA Final
★ 510
1
71
SIr for new contract in problem 85, why again margin you deducted but earlier you said that for cancellation only margins are applicable please clarify my doubt thanking you sir , yours sincerely
AFM
answered on 24-May-26 14:35
SIr for new contract in problem 85, why again margin you deducted but earlier you said that for cancellation only margins are applicable please clarify my doubt thanking you sir , yours sincerely
latest answer
margin is applicable on new contracts but on cancellation only on last cancellation
Bandaru Sandeep
CA Inter
★ 0
1
66
1st period
AFM
answered on 24-May-26 07:59
Sir, since the interest rate for 1st period of 6 months is not provided, are we not taking it in the total interest cost calculation? [Video Time Stamp: 13:49]
latest answer
Int due at the end of 1st period is already known at beginning of first period I.e day of borrowing Hence no need to buy a cap for that Hence not taking in overall calculation
SANJITHA
CA Final
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75
Cap/Floor settlement
AFM
answered on 23-May-26 16:10
Sir, are we assuming here that settlement of cap/floor is at end of each caplet/floorlet? [Video Time Stamp: 23:43]
latest answer
Yes
SANJITHA
CA Final
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86