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Forex Chapter Ill-79
AFM
answered on 22-May-25 07:46
In this Q, $1=₹51.3625/3700 is a direct quote. But for the purpose of quoting this rate to a foreign bank we converted this quote to indirect quote. so will the bid and ask rate interchange? ie; 1/51.3625 becomes ASK Rate 1/51.3700 becomes BID Rate Sir, correct me if i am wrong
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Got the logic 👍
rashid poonthala
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Upfront Premia
AFM
answered on 21-May-25 16:39
What does it mean when you say that the upfront premia is an independent cost? In Illustration 50, we've assumed that the upfront premium is included in the forward rate. Here, we're considering the same as an additional cost over and above the forward rate. I don't get the true essence of what actually is happening here. Could you please help me out?
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Premia
Ruthvik Reddy Adala
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Forex chapter Ill-72
AFM
answered on 21-May-25 10:40
Earlier A/Cs are sold at 500 EUR But when price is fixed @ Rs 25000 their customer has to pay only 483.09 EUR (ie Rs25000/51.75) So Reduction in price is 3.382% (ie;[ 500-483.09]/500*100) Then Demand Increase by 5.073% (ie;3.382%*1.5) So revised demand is 2528 approx (ie 2400units*1.0573 ) Sir, Is this Logic Correct?
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No, the price is fixed in INR and not Euro So equivalent Euros is the price - you have to ignore old price of 500 when you make this revised computation as they said price is fixed in INR. Comparision has to be 25000 @ 51.50 vs 25000 @ 51.75 I agree question can be worded better This is ICAI illustration 48 Page 10.104 https://resource.cdn.icai.org/83287bos67342-cp10.pdf
rashid poonthala
CA Final
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arbitrage illustraion 9 forex
AFM
answered on 21-May-25 17:08
sir in this illustration we bought SGD against rupee in the first tranche not USD.
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Ok sir thanks
Akshat Sharma
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Coupon interest is 80
AFM
answered on 21-May-25 07:52
The coupon interest is taken as 80 in the solution provided in material provided.
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Regret the inconvenience - will correct the material - thanks a lot for highlighting the same
Sugathan P.R
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Regarding books
AFM
answered on 20-May-25 17:11
I've purchased FR and Afm course. Today I've received a mail which shows cost around Rs. 3311 for the books, aren't the books cost included in the course fee?
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Ok sir. Thank you so much
Evangeline Rebecca D
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Reason for not deducting 1st year dividend of Rs. 10,000 while calculating closing NAV on 31.3.2024 when the return of 193.134% includes 1st year return also.
AFM
answered on 17-Jul-26 16:45
Why was only the second year dividend (20,976 ) considered when calculating NAV on 31.03.2024? while the holding returns calculated 193.134% in 2nd year is for 21 months .
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ok sir thank you
Shinisha Rose R
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Tenure of INR Loan
AFM
answered on 20-May-25 14:04
Have we assumed the tenure of the INR loan to be 6 months?
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Yes
Ruthvik Reddy Adala
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Arbitrage (Theoretical vs Actual forward prices)
AFM
answered on 20-May-25 12:28
Sir, Whether can we compare the Theoretical forward prices for 3 months and 6 Months (by taking the Ask price of Direct quote) and conclude that the forwards are costlier hence no arbitrage. I have tried to solve the solution in the above method, can you please clarify the same.
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Okay sir understood. Thankyou.
Chaitanya Sai Gupta
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Illustration 32 (Mohan)
AFM
answered on 18-May-25 22:59
In the part (iv), When nifty futures dropped by 2.5%, then the A ltd shares should have been dropped by 5% based on beta of A ltd (2*2.5). And there should be gain as prices comes down for shorted shares. But why have we considered the other way and solved?
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Thanks for the clarification sir. clear now
Dhanushree Shanmugam
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