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Dividend calculation
AFM
answered on 19-Aug-25 09:02
Sir, in thiṡ question future contract is for 6 month and the dividend yield is given P.A, why it is not taken 6/12 for calculation... the 50% taken is for the reason that divident is paid only by half the companies right.. what is the reason behind this [Video Time Stamp: 19:42]
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Dividend
Abhinav K A
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Bid Ask
AFM
answered on 18-Aug-25 19:48
Bid & Ask is all about focuses on Base currency If in case of USD INR (Direct Quote) If customer wants Quote currency(INR), Bank Buy Base currency(USD) which it become Bid and bank sell Quote currency If customer wants Base currency(USD), Bank Sell Base Currency(USD) which it become Ask and bank buy Quote currency If in case of INR USD (Indirect Quote) If customer wants Quote currency(USD), Bank Buy Base currency(INR) which it becomes Bid and bank sell Quote currency If customer wants Base currency(INR), Bank Sells Base Currency(USD) which it become Ask and bank buy Quote currency Bank Buys cheap and Sells costly In direct quote (USD INR), from point of view of base currency for 1$, it buys cheap @ 75.3510 In indirect quote (INR USD), from point of view of base currency for 1₹ it buys cheap @ 1/75.449 Whether my understanding from the concept is correct sir? [Video Time Stamp: 04:01] [Video Time Stamp: 04:01]
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Right
Banu Priya
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BSM
AFM
answered on 18-Aug-25 10:32
My answer varies with the one given in book sir
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In image titles ans 2 You changes N(d1) from N ( 0.2083) to N(0.2823) in line 1 itself
Banu Priya
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Delta (Δ)
AFM
answered on 17-Aug-25 07:01
Δ = Change in price of option / Change in price of stock then Cu shouldn't be 8.3 & Cd be 0 Δ = 8.3/6 Whether numerator of Δ is change is price of option or call ? It is confusing sir [Video Time Stamp: 22:54]
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price of call at a point is the pay off of call at that point
Banu Priya
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Doubt regarding Credit Period
AFM
answered on 17-Aug-25 08:10
Sir, is my understanding with respect to the Credit period is correct ? 1. If we pay within 60 days, we have to avail bank loan for 30 days @10%. 2. If we avail 90 days credit period, then the supplier is ready to give loan in Dollars @8% for 30 days. (we are choosing supplier because interest is less compared to bank loan). [Video Time Stamp: 01:54]
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Understood sir!
Ranjith Belide
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e^rt
AFM
answered on 16-Aug-25 19:26
e^3.6% × 1/12 which is e^ 0.003 but they have given the value of e^0.036, shouldn't we find value e^003 ? Kindly advice what should be done in similar cases when t is given in months [Video Time Stamp: 06:24]
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Okay sir
Banu Priya
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When the Expected Price is Rs 160
AFM
answered on 16-Aug-25 18:39
Sir, the expected price is ₹160 and the exercise price is ₹150 while we have also paid a premia of ₹ 10, then we wouldn't exercise the option. Why we didn't consider the effect of premia for determining whether the option is exercisable or not ? [Video Time Stamp: 02:07]
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Understood now sir
Banu Priya
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Interest Rate Risk Management
AFM
answered on 16-Aug-25 19:22
Sir, In Problem no 10 - We calculated no of days for each quarter (91, 92, 92, 90) days which is adding to 365 days, however for computation we have taken 91/360 (Since 360 is mentioned in question) - Isn't this Incorrect?? Cant we assume 90 days flat for each quarter since total days in a year is 360 as mentioned in Question?? [Video Time Stamp: 09:00]
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Thank you for the clarification Sir
KSHAMITHA NAIK
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Option
AFM
answered on 15-Aug-25 20:33
Call Option - Exercises when market price is higher -> Buy Call - Higher the price, higher the gain -> Sell Call - Higher the price, higher the loss Put Option - Exercises When the market price is lower -> Buy Put - Lower the price, higher the gain -> Sell Put - Lower the price, higher the loss Whether my understanding is correct sir?
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Yes absolutely right
Banu Priya
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Borrowing in USD
AFM
answered on 15-Aug-25 19:55
Sir, i didn't understood the logic of considering ASK rate (36.40) while converting USD to INR? [Video Time Stamp: 06:00]
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Understood sir!
Ranjith Belide
CA Final
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