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B Inc
AFM
answered on 06-Apr-25 17:58
However, in the question they have written that B intends to borrow in yen then why are we borrowing in dollars
latest answer
You will initially borrow in usd and then change or swap it to yen Post he swap Economic effect would be of yen borrowing only
Hrishikesh Pradhan
Qualified CA
★ 18K+
1
287
IB JPY Fixed
AFM
answered on 06-Apr-25 17:58
Simple question that why IB will agree, IB is getting JPY Fixed at 2% then why will it agree to take at 2.25% , agreed that overall cost will come down but as a company i will not choose costlier option and i have to even pay 0.25% of commission so in net i am paying 2.5% instead of 2%
latest answer
Haan Haan, understood sir !
Hrishikesh Pradhan
Qualified CA
★ 18K+
2
324
Logic
AFM
answered on 06-Apr-25 12:15
Here, wording is generic swap at 8% against 6 months LIBOR, what does this means, is it i am swapping 8% with 6 % so if yes i will be paying to the other 6% na ?, so what is the logic of paying the differential
latest answer
Logic
Hrishikesh Pradhan
Qualified CA
★ 18K+
1
333
Present value of FRA
AFM
answered on 06-Apr-25 10:50
In part a, while calculating FRA receipt settlement why didn't we considered present value as our formula has present value in denominator.
latest answer
Fra
Hrishikesh Pradhan
Qualified CA
★ 18K+
1
277
MTP-1 May 2025 Nostro
AFM
answered on 06-Apr-25 08:38
Sir i have attached MTP 1 case and question, Answer for Q6 = Option D and for Q 7 = Option C, let me know how its solved as i got answer 200,000 and 75,000
latest answer
Q 6 & 7 i got same answer as you - not sure what they mean here - logical reading says both DD & bill 9 should be spot sales 55k option B 10 should be forward buy 15k - option A Not sure why there are so many mistakes in this MTP :)
Hemachandra D
CA Final
★ 9K+
2
328
MTP 1
AFM
answered on 06-Apr-25 08:06
Sir I have attached MTP -1 May2025 case, in that Question 3 option mentioned is C as we know in case of side pocketing, the ammount is locked, isn't the answer should be Option A After the decision of Fund Manager for side-pocketing the equivalent portion of Mr. Ramesh’s investment shall_____ (A) remains illiquid until the Fund Manager decides to sell it or the company recovers. (B) be immediately written off, and the Mr. Ramesh loses that portion. (C) be returned to Mr. Ramesh in proportion to his holdings. (D) be moved into a different Mutual Fund Scheme with no risk And also for samme case quesiton, answer mentioned is Unsecussful, may I know why we considering unsuccesful The Fund has been ……………… in replicating return on Nifty 50. (A) Successful (B) Unsuccessful (C) Can’t say (D) Data is insufficient
latest answer
Mf side pocketing
Hemachandra D
CA Final
★ 9K+
1
389
Principal amount
AFM
answered on 05-Apr-25 22:00
Sir, actually the principal amount is 10 million and not 30 million, why have we taken 30 million
latest answer
Got it sir, how 30 million came
Hrishikesh Pradhan
Qualified CA
★ 18K+
1
379
Floor
AFM
answered on 06-Apr-25 08:02
Sir, could you please once again explain with example about buy floor and sell floor , i am little confuse between them when to add or less logically for collar when there is buy floor or sell floor.
latest answer
Floor
Hrishikesh Pradhan
Qualified CA
★ 18K+
1
436
MCQ - Model TP 2
AFM
answered on 06-Apr-25 07:56
In case Q Ltd. wants to be sure that its EPS is not diminished by the merger, the relevant exchange ratio to achieve the same objective should be.................... (a) 0.33 (b) 1.20 (c) 1.30 (d) 1.10 sir EPS ratio is 5:6, the answer given in Model test paper is 0.33 considering as straight EPS will be 6 in this case, the answer ideally should be 1.2 right considering Equivalent EPS is what we always look from I have attached the Image of question
latest answer
icai answer incorrect. your answer is right
Hemachandra D
CA Final
★ 9K+
1
359
Portfolio Management
AFM
answered on 04-Apr-25 13:20
Sir, In this question is there a mathematical error? As i don't understand how root of percentage can be percentage. From previous problems i could draw conclusion as below. Covariance, variance should be in (%)². Standard Deviation in %. If i do the solution taking Cov in %² answer is coming correct... is this a mistake in ICAI question. Its very confusing. Sometimes they take decimals sometimes they dont. What is the right approach of taking care in this situation
latest answer
ICAI did not teach it properly in their material. What you did is right. I have taught the correct way in my class too, variance is % square, so is co variance SD is % My suggestion ignore % right in the beginning and add it in the end that way you don't have to bother Abt decimals at all
R M
ACCA Professional
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1
300