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Delivery of stock

AFM

answered on 23-Apr-26 06:50

Sir, in the arbitrage scenario, at maturity are we delivering the stock to settle the future contract? Can it be also 2 separate transactions where stock is sold in the market at expiry date and future contract is closed on net cash settlement. [Video Time Stamp: 08:49]

latest answer

Yes

SANJITHA

CA Final

55

1

25

MTP 2 May 26

AFM

answered on 21-Apr-26 19:03

In sub question 3, how did they decided that add 13 and reduce 3.5 and what is the logic behind this

latest answer

The reasoning they gave is that 3.5 year duration bond has too small a duration. Also it has a very high coupon so price impact of yield reduction will be very minimal hence they chose the next bond. Honestly am not sure how and why they come up with such questions and explanations 🤦 I

Hrishikesh Pradhan

Hrishikesh Pradhan

CA Final

18K+

3

40

Margin Money

AFM

answered on 21-Apr-26 11:41

Sir, Is the margin % calculated on the current market price of the asset? [Video Time Stamp: 12:00]

latest answer

In real world yes I’m icao margin is based on original contract value

SANJITHA

CA Final

55

3

27

1st floorset and Payoff from floor

AFM

answered on 21-Apr-26 09:13

I need some clarification audio note on the same. I understand - generally that. 1st floor will always be after payment of 1st installment. And Payoff from floor start after the 1st floorset payment. Is it correct.? [Video Time Stamp: 07:19]

latest answer

Payoff

Vinod Kumawat

Vinod Kumawat

CA Final

1K+

1

38

Exit Load

AFM

answered on 20-Apr-26 13:17

Sir, the exit load is charged at the redemption price right, will it be fine if we deduct 5% directly from the annualised yield%? [Video Time Stamp: 28:50]

latest answer

Depends on question and various aspects covered in it For not do a direct deduction like that Preferably compute separately

SANJITHA

CA Final

55

1

31

Doubt

AFM

answered on 20-Apr-26 12:16

Here, 41.5 is the nominal value, but here we used the rates formula, instead of the absolute value. [Video Time Stamp: 21:55]

latest answer

Thank you sir

pavan kumar

pavan kumar

CA Final

2K+

2

33

Portfolio Appreciation

AFM

answered on 20-Apr-26 11:03

Sir, Can we assume that Portfolio appreciation includes the income generated in the month of April, May and June?

latest answer

No Portfolio appreciation is pure CG Income is dividend

SANJITHA

CA Final

55

1

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Short long

AFM

answered on 20-Apr-26 10:45

This is like the call option or put option. FR here is strike price. Call means if MR >SP, Gain (Exercise option) Call means long Put option if SR>MR, Gain (Exercise put option) put means sell So can we think like this also ? [Video Time Stamp: 09:33]

latest answer

Ok sir ji

Vinod Kumawat

Vinod Kumawat

CA Final

1K+

2

27

Doubt

AFM

answered on 19-Apr-26 21:13

Here if means are not equal we have to check sigma(x-X)^2/S.D. and consider whichever is lower. [Video Time Stamp: 12:36]

latest answer

You have to always check for both return and risk and then co efficient of variation has to be found out if it is not clear by simply comparing risks and returns

pavan kumar

pavan kumar

CA Final

2K+

1

30

Please add one additional question for practice with more conceptual clr..

AFM

answered on 19-Apr-26 21:14

NDF Concept with detailed example -please add one question

latest answer

Ok

Vinod Kumawat

Vinod Kumawat

CA Final

1K+

1

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