Forums
Illus 18
AFM
answered on 07-Mar-26 16:21
Sir, How under case 1, the future price after 6 month is Rs.14296.8, but in case 2, the future price after 6 months is Rs.10,200. Then how could we arrive at same profit of Rs.43.2 under both the cases, sir? [Video Time Stamp: 16:50]
latest answer
Future price changes based on spot
Swathi S
CA Final
★ 975
1
105
Illus 18
AFM
answered on 07-Mar-26 16:19
Sir, In the first case, we have taken the proceeds from closing of F.C as theoretical future price and arrived at profit of Rs.43.2. Whereas in the second case, taken the spot price as on that date (i.e. 10500) as proceeds from closing of F.C - I couldn't understand this sir, and how come same profit is being arrived in all the cases? [Video Time Stamp: 16:50]
latest answer
Profit
Swathi S
CA Final
★ 975
1
108
Unable to open file please check the same
AFM
answered on 07-Mar-26 09:02
Study material file can't open LDR revision notes
latest answer
We are able to open can you check on a different machine . Providing link below for reference https://1fin.link/resource/20ac13c2434c438d860d4d9e410b2095/fd388940d0674d92a8d84a95cbebe4f1
Vinod Kumawat
CA Final
★ 2K+
1
135
IRR method
AFM
answered on 07-Mar-26 07:24
Sir, By IRR method, we could arrive only the minimum return so that NPV is Zero. But it doesn't depict the actual return know sir. If in case, rate has been mentioned in the question - in such case going with discounting method would give us the appropriate return. Since here the question is silent on the rate, the first method of solving is more appropriate. Please correct me, if I wrong, sir. [Video Time Stamp: 11:06]
latest answer
ICAI solution says go with NPV
Swathi S
CA Final
★ 975
1
174
Mergers & Acquisition
AFM
answered on 06-Mar-26 17:29
Hi Sir, How to find the exchange ratio, to maintain the same EPS (Pre-Merger) for target company.
latest answer
Inverse of ratio if eps numbers of two companies
Poluru Penchalaiah
CA Final
★ 12K+
1
150
Illus 10 - What if changes happened as per Beta
AFM
answered on 07-Mar-26 09:03
Case 1: X Ltd appreciated by 2.25%, Y Ltd appreciated by 3% and Nifty futures appreciated by 1.5% Case 2: X Ltd dropped by 2.25%, Y Ltd dropped by 3% and Nifty futures dropped by 1.5% In these above 2 cases, there would not be any profit or loss. Am I right, sir? [Video Time Stamp: 17:40]
latest answer
Yes
Swathi S
CA Final
★ 975
1
153
Illus 10
AFM
answered on 07-Mar-26 09:06
Sir, Is this way of solution is correct? [Video Time Stamp: 17:40]
latest answer
Yes. but you can compute NIFTY hedge for net value right at beginning like it did in class
Swathi S
CA Final
★ 975
1
186
Arbitrage Strategy
AFM
answered on 06-Mar-26 08:01
Sir, Please correct me, if I'm wrong. I'm buying share at Rs.300 in cash market and shorting futures at Rs.312. (This is arbitrage because buying in cheaper market and selling in expensive market). If both happened Day 0 means, Rs.12 will be my arbitrage profit. Here, Rs, 300 is at Day 0 and Rs.312 is at Day 90. Hence, we bringing the Rs.300 to its future value and then differencing to arrive at arbitrage profit. Am I correct, sir? [Video Time Stamp: 00:10]
latest answer
Yes
Swathi S
CA Final
★ 975
1
144
Dividend
AFM
answered on 06-Mar-26 11:10
Sir, If we change the assumption to Dividend has been paid in the beginning itself, in such case whether the computation of future price of 1 month contract after 3 months considers the dividend part? Also, in our solution - F.P of 1 month contract - why have taken dividend on Rs.4,500. Then F.P at time of shorting , we have taken Rs.5,000 - I couldn't get the logic here, sir. [Video Time Stamp: 24:39]
latest answer
If Q says dividend yield, then you cannot take it beginning. it accrues over the period. you take it towards the end. When you do continuous compounding this yield is subtracted from coc - you will see this in upcoming problems value of a 4 future after 3 months depends on spot after 3 months - div yield is not on original value but value of BSE spot at the time of computation
Swathi S
CA Final
★ 975
1
117
Method
AFM
answered on 06-Mar-26 07:33
Sir, Why have we used simple interest method - we could have used compound interest know sir? [Video Time Stamp: 13:36]
latest answer
Usually they specify which method to use Here o have use simple interest just to show you how it is done
Swathi S
CA Final
★ 975
1
166