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formulae derivation
AFM
answered on 26-Oct-25 18:15
sir is this concept important from exam perspective, or a indepth discussion for understanding, cause i feel it a little bit tricky [Video Time Stamp: 09:19]
latest answer
Yes very important They have asked 2 times in last 5 attempts
Raghavan Mani
CA Final
★ 355
1
258
beta of the market
AFM
answered on 24-Oct-25 18:03
sir will the beta of the market will always be 1 ah sir [Video Time Stamp: 04:01]
latest answer
Yes
Raghavan Mani
CA Final
★ 355
1
227
formulae derivations
AFM
answered on 24-Oct-25 16:47
sir some of the formulae derivations iam feeling tought o understand sir, is it madatory that i need to know them or shall i memorize it from exam perspective sir [Video Time Stamp: 23:24]
latest answer
Derivations are not required they are for subject understanding Not relevant for exam at all
Raghavan Mani
CA Final
★ 355
1
186
Clarification on the Direction of INR/JPY Movement.
AFM
answered on 24-Oct-25 16:56
Sir, Here the rate changed from 3.6 to 3.24 which INR has been appreciated then it should be beneficial for an Indian company in this example. The Actual forward is 3.3 which means we have to pay more rupees. But the final answer is saying 3.3 is beneficial. I'm confused, please clarify. [Video Time Stamp: 11:13]
latest answer
Yen
K Vamshi
CA Final
★ 14K+
1
210
illustratoin 26
AFM
answered on 24-Oct-25 16:58
sir i got once small doubt since the future cash flows are involved should we discount the value of cash flows, in qn they have not given the discount rate too, but anyway we are finding the Ke so can we use it for discounting.can it be a alternate answer. [Video Time Stamp: 07:01]
latest answer
Disc
Raghavan Mani
CA Final
★ 355
1
189
mutual fund dividend
AFM
answered on 23-Oct-25 16:50
sir, it is a small doubt but how can a mutual fund can declare the dividend but itself , MF is itself a collective investment in equities, so how can it by itself declare a dividend, i searched in companies act also there is no such thing kindly help me out sir [Video Time Stamp: 00:33]
latest answer
Mf dividend
Raghavan Mani
CA Final
★ 355
1
250
var
AFM
answered on 23-Oct-25 22:21
sir Q1)while calculating VAR why we didn't multiply with Portfolio value(i.e. 400 lakhs) Q2) what is the weight if we solve the problem in Rupee terms and not in % terms, Is it 1 or 0.5 [Video Time Stamp: 13:57]
latest answer
Thank you sir
Balamurugan V
CA Final
★ 52K+
2
210
Cross Rate Difference
AFM
answered on 24-Oct-25 14:12
Sir, whether my calculation is correct or not.?? Please clarify where I went wrong as I'm getting a different answer for cross Rate as well as loss. [Video Time Stamp: 00:01]
latest answer
Okay Sir. Thank you.
K Vamshi
CA Final
★ 14K+
4
198
Value of Option
AFM
answered on 22-Oct-25 18:30
Sir, At node A, B & C (Last Nodes) value of Option=Payoffs at that nodes, and at Node D, E and Origin, Value of Call Option= PV of Expected Payoffs of Previous Nodes, and Again to calculate the Delta at Node D & E we are taking the Value of Option= Payoffs at that node(not considering the Value of Option that We calculated at Node D & E using the PV of Expected Payoffs of Node A, B, C). I don't understand the logic, sir. Please clarify. [Video Time Stamp: 23:24]
latest answer
I misunderstood your question - What you are saying w.r.t European vs American is right. In this question we are talking abt European Now coming to main question which you asked first. Why are we taking Full value & not PV to compute delta? - Good question When we compute delta we are not required to do any pv as we are measuring impact of stock price change on option price - whether option is exercisable or not at that point is independent. If one were to stick to the point that option is not exercisable at nodes D&E then they should not have been given at all. D & E are given for computation purpose. Delta strictly refers to minutest change in option price due to minutest change in stock price - in this model it refers to the first two nodes after origin. Secondly we are not measuring PV impact of change in stock price on change in option price - we are measuring direct impact if option were available to be exercised on that day, basically intrinsic value portion PV of option pay offs is for valuing an option - it is a transitory value as i mentioned in the video. That cannot be used for measuring impact of change in stock price on change in option price
Murali Thripuraboina
CA Final
★ 3K+
3
226
May 2022- Security valuation
AFM
answered on 21-Oct-25 17:31
In this question, while calculating FCFE, why ah e they deducted 0.43 from 1, as 0.43 is debt equity ratio, could you pls explain it's logic
latest answer
Pls go through ill 37 in this chapter that i solved in class - same ques diff numbers - explained this aspect in depth
Hrishikesh Pradhan
Qualified CA
★ 18K+
1
273