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AFM
answered on 21-May-26 20:10
Why falling wedge a bullish trend? [Video Time Stamp: 05:24]
latest answer
Because the The price movement is getting constrained and bottoms are going lower and so are the tops. It indicates that sellers are unable to push the price beyond a certain level and buyers are able to push them back. Secondly each successive drop is smaller than the previous top indicating It is reaching a support level and after that point there will be a breakout
pavan kumar
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152
Exchange margin
AFM
answered on 21-May-26 12:04
1. Sir, whether the Sale at spot on 10/9 and 12/9 is made to another bank or customer? 2. If sale done to customer, why exchange margin is not applicable for spot sale on 10/9? 3. On selling spot at 12/9, Bank is selling $ and receiving ₹ and the customer in turn buy $, so the exchange margin should be added instead of reducing right? [Video Time Stamp: 21:01]
latest answer
1. ON 10th Sep /12th the buy / sale on spot is assumed to be made in interbank - whether the bank actually executed it with another customer or interbank is irrelevant 2. Exchange margin is on last cancellation as per fedai rules - pls check the table i shared when explaining this concept - it is not on all intermediate cancellations 3. on 12/9 bank is selling on spot in interbank market. when bank is selling, they will receive INR, always assume that when you look at things from customer side we get lower money on sales and pay higher money on purchases. Here since bank is now going to behave like customer and interbank will be like the main bank. Customer loses money on margin So when Bank sells USD they will receive less INR hence margin is reduced
SANJITHA
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101
Illustration 20
AFM
answered on 20-May-26 22:04
Sir, regarding Part 3 of the question, while computing the opening NAV, my understanding is that we need to assume that only the investments are available at the opening stage and that they are valued at cost. Is my understanding correct?
latest answer
Yes
Mhd Mmp
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doubt
AFM
answered on 20-May-26 17:11
sir why are we multiplying 1+x instead of x. [Video Time Stamp: 08:00]
latest answer
Thank you sir
pavan kumar
CA Final
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97
New contract
AFM
answered on 20-May-26 11:25
Sir, for the new contract entered will the bank again cover its position by interbank forward? Does the same process continues?
latest answer
Yes
SANJITHA
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81
Option exercise
AFM
answered on 20-May-26 08:26
Sir, if the question has mentioned the Spot rate as on July 31 and Sep 30 for unhedged currency, can we use that and decide whether to exercise the option or not? Since here it is mentioned to assume the forward rate as spot rate only for unhedged currency, are we not doing that? [Video Time Stamp: 19:21]
latest answer
Yes we do that only for options
SANJITHA
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142
Opening balance
AFM
answered on 20-May-26 08:24
Sir, how we have decided that the opening balance in Nostro Account is Credit balance? [Video Time Stamp: 06:51]
latest answer
When we use sentences like Balance in bank accounts is 10000 it means money belongs to you Balance in loan account is 10000 it means your outstanding loan is 10000
SANJITHA
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84
security valuation qst number 9
AFM
answered on 19-May-26 10:53
sir why we take 11.11 as eps1 its not clear. we determined eps on the basis of pe ratio and retention it is already computed which means it relates to year0 ?? [Video Time Stamp: 03:18]
latest answer
Question is ambiguous You can solve alternatively also and mention your assumption I mentioned it clearly in the video
saipriya v
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160
Advance Capital Budgeting Decisions - Illustration 13
AFM
answered on 18-May-26 15:41
In this illustration coefficient of variation is written as: CV = σ/ ENPV But in the solution no discounting or NPV calculation has been done. Only expected cash flow has been calculated using CF × Probability. So should the denominator technically be Expected Cash Flow instead of Expected NPV? [Video Time Stamp: 07:09]
latest answer
If ENPV is not available i.e outflows and project timeline are not available then ECF will have to be used
Madhu GK
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87
Borrowings
AFM
answered on 16-May-26 07:48
Sir, like borrowings made for hedging, can we also assume that ₹ equivalent export proceeds will finance both borrowing + interest. x + (x*8%*60/365) = 183,69,825.
latest answer
No you cannot make such assumption If you work out the way you were suggesting, borrowing will be for a lesser amount How do you know that it was for a lesser amount - nothing is mentioned in the question to indicate that
SANJITHA
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83