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Expected Value of the call option

AFM

answered on 28-Sep-26 21:19

Sir, Should we not discount the expected payoff of the call option to its present value to arrive at the expected value of the option? Or since it has the word the "expected" in it, does it always mean the future value of the option? I'm confused if the question is trying to ask the expected value of the option as on the date of purchase of the option or on the date of the maturity of the option. Kindly clarify [Video Time Stamp: 09:43]

latest answer

Thank you sir!

Gokul

Gokul

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54

Diluted EPS

Financial Reporting

answered on 01-Oct-26 10:34

Sir shouldnt it be PBT 80000 Bonus 792 Int 1000 ----------------------------------- 81792 Bonus -818 ---------------------------------- PBT 80974 Tax@20% -16195 ---------------------------------- Earnings Available 64779

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Welcome

Niranjan Bhat

Niranjan Bhat

CA Final

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38

Q.20

AFM

answered on 28-Sep-26 21:00

Can I solve like this sir, this formula used in one similar question in portfolio management [Video Time Stamp: 08:58]

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Yes

Santoshkumar Kalisetti

Santoshkumar Kalisetti

CA Final

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30

Corporate dividend tax, Interest on convertable debentures

Accountancy

answered on 08-Oct-26 09:58

Sir, I would like to know while calculating diluted basic EPS for the numerator why we added corporate dividend tax with dividends on convertible preference shares and why we deducted tax from interest on convertible debentures [Video Time Stamp: 05:33]

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If any assumption is made, we should make a note of it.

Gurukanta Singh

Gurukanta Singh

CA Inter

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4

70

Service by Ecommerce operator

Indirect Taxation

answered 44 mins ago

Intra state supply of goods by small supplier through e-commerce operator then who is liable eco or supplier.

latest answer

Yes right

Mathumetra Arulraj

Mathumetra Arulraj

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33

Restaurant service through eco

Indirect Taxation

answered 45 mins ago

Why packed items like chips or cool drinks is not a restaurant service..and if I dominos pizza is ordered there coke is normal to order at that time eco will pay GST or restaurant

latest answer

It is technically goods since it is packaged product

Mathumetra Arulraj

Mathumetra Arulraj

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28

Ethics Ans for this case

CFA

answered on 28-Sep-26 21:14

Janet Reilly has just approached Betty Miller, CFA, about purchasing 10,000 shares of Brookshire Co., a newly incorporated real estate development firm. Reilly is a retired schoolteacher living off the income from her late husband's life insurance policy. This investment will represent a significant shift in her investment portfolio. Miller believes this trade is unsuitable with respect to Reilly's investment policy statement. Consistent with the Standards, Miller should most appropriately: A) not accept the order, because it is not a suitable investment for Reilly. Incorrect Answer selected Option A is not accept the order, because it is not a suitable investment for Reilly. is incorrect B) discuss with Reilly whether she wishes to update her investment policy statement. Correct Answer unselected Option B is discuss with Reilly whether she wishes to update her investment policy statement. is correct C) follow her firm’s procedures for obtaining Reilly’s approval to carry out the unsolicited trade request.

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yes out of 3 options, this is most accurate hence

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

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44

Derivatives American options

CFA

answered on 28-Sep-26 21:01

Please explain how the binomial tree valuation is different for American-style options. I know how to value European-style options via a binomial tree but didn't understand how to value American-style options explain

latest answer

American option

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

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39

Recognition of cost

Financial Reporting

answered on 28-Sep-26 09:46

but why we should recognise the cost of 50cr in yearx0-x1 ? because the expenses incurred in year x1-x2 so if u show the expenses of 50cr then the revenue of next year wil be inflated right ? [Video Time Stamp: 02:54]

latest answer

revenue of next year will remain the same. The cost incurred in second year will be offset against provision of year 1.

Niranjan Bhat

Niranjan Bhat

CA Final

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2

26

Section 12(2)

Indirect Taxation

asked on 27-Sep-26 19:51

Sir, In the case of Pallav, if he purchases a car from Mr. X in Maharashtra of the same company as stated in the example, and Mr. X purchases a car from that company, if Pallav takes his car to an authorized service center in Gujarat, what would be the place of supply in this case? Assume Pallav and Mr. X are registered persons, and address on record is of Mr x

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No answers yet!!

Gurukanta Singh

Gurukanta Singh

CA Inter

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0

33