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AFM

answered on 13-Apr-26 20:35

1. In the above question, the lot size is not mentioned. It says 1 future contract is for the delivery of 50 times the index. 2. Why are we choosing the BSE index for the computation of future price instead of choosing the value of the portfolio, which we did in the previous question? [Video Time Stamp: 15:12]

latest answer

In previous question they asked us to find out value of stock futures Here they have asked us to hedge the portfolio and that hedging cannot happen by entering to portfolio futures by using stock index futures . Here we use index futures adjusting their quantity to ensure beta of portfolio is same as beta of futures

pavan kumar

pavan kumar

CA Final

3K+

1

109

FOR CA FINAL AFM IMPORTANT QUESTIONS LIST - UNDER Derivative Analysis Under Options they have mentioned Question no. 38,39 but the p600+ have only questions up to 37 where does the question 38 and 39 come from?..

AFM

answered on 13-Apr-26 18:32

FOR CA FINAL AFM IMPORTANT QUESTIONS LIST - UNDER Derivative Analysis Under Options they have mentioned Question no. 38,39 but the p600+ have only questions up to 37 where does the question 38 and 39 come from?..

latest answer

Thank you 👍

Lingesh Elumalai

Lingesh Elumalai

CA Final

300

3

105

Doubt

AFM

answered on 13-Apr-26 15:00

1. Can we sell some of our stocks at a time in the cash market? [Video Time Stamp: 19:24]

latest answer

Yes

pavan kumar

pavan kumar

CA Final

3K+

1

92

Doubt

AFM

answered on 13-Apr-26 12:17

1.What happens, If the theoretical price is higher than the future price in this example. 2.We are considering bullish every time. What happens if it is a bearish market.

latest answer

Those scenarios are also considered in subsequent examples. Of Theoretical price is higher then Buy Futures in market as they are cheaper than theoretical price Buy cheap sell costly

pavan kumar

pavan kumar

CA Final

3K+

1

134

Margin

AFM

answered on 13-Apr-26 06:06

Sir, i understand when to add or deduct margin, but I can't understand where to use buying rate and selling rate. Can you explain [Video Time Stamp: 00:57]

latest answer

Yes

Nitin Raj

Nitin Raj

CA Final

270

3

124

Q

AFM

answered on 12-Apr-26 18:22

Sir, the formula for co-efficient of variance is (S.D/ CF'S).Then in this q, why is NPV considered as the denominator? [Video Time Stamp: 05:09]

latest answer

Here cf refers to mean cash flow which is expected npv Actual formula is sd / mean In adv cap budgeting mean refers to mean cash flows

SANSKRITI BADRI 2111339

SANSKRITI BADRI 2111339

CA Final

4K+

1

101

Efficient Frontier Vs Mean Variance Portfolio

AFM

answered on 12-Apr-26 17:14

Sir, how is the Efficient Frontier differentiated from Mean Variance Portfolio? [Video Time Stamp: 13:47]

latest answer

Yes

SANJITHA

CA Final

1K+

3

113

Gain loss in case of export import ( Forward market vs theoretical forward rate)

AFM

answered on 12-Apr-26 13:24

Because we are exporter here and if we are receiver of money , if we receive less than ideal forward rate than it is loss for us. and other way in case of importer if we are paying the same then it is good for us. Curx of the story theoretical ( ideal) has direct relationship with exporter gain loss and indirect relation with import.

latest answer

Yes

Vinod Kumawat

Vinod Kumawat

CA Final

2K+

1

94

Premium

AFM

answered on 12-Apr-26 13:30

Sir, in jan 26 exam, the question says lumpsum premium and they haven't mentioned anywhere that premium is paid in installments but still they discounted it with PVIFA. What's the reason sir?

latest answer

ok sir

Nitin Raj

Nitin Raj

CA Final

270

2

147

Regarding strategy 1

AFM

answered on 12-Apr-26 13:22

How are index futures used to balance the weightage of portfolio? [Video Time Stamp: 03:30]

latest answer

Every Portfolio has a beta Index futures have beta of 1 We have solved problems later on where you will see this. please go through them and then come back if you do not understand

pavan kumar

pavan kumar

CA Final

3K+

1

93