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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

Raghavan Mani

CA Final

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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

Raghavan Mani

CA Final

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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

Raghavan Mani

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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

K Vamshi

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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

Raghavan Mani

CA Final

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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

Raghavan Mani

CA Final

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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

Balamurugan V

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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

K Vamshi

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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

Murali Thripuraboina

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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

Hrishikesh Pradhan

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273