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IRRM- Illustration 13
AFM
answered on 07-Mar-24 09:18
Sir, In this problem, I am not able to understand the premium part. Why we have divided the premium payable with the PVF and 4 periods as reset periods are only 3 right
latest answer
We did that because question says so.
Suresh Avinash
CA Final
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1
284
Premium deduction
AFM
answered on 07-Mar-24 09:27
Do we need to deduct 3 rs premium amount twice ? Or In case a - reducing rs 2 and case b reducing rs 1 Is this correct ?
latest answer
In scenario (a), he took two positions, both call and buy positions, paying a premium of ₹3 for each. He gained ₹1 from these positions, resulting in a net loss of ₹2. We consider each position as taken at two different scenarios for analysis.
Rahul Kumar
CA Final
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2
311
UPLOAD DATE OF AMORTIZATIO
Accountancy
answered on 06-Mar-24 23:21
hello sir , can i know when amortization topic will be uploaded and also gst topic
latest answer
GST topic in next week. After that amortisation
sukeerthi chinnaramugari
CA Foundation
★ 1K+
1
190
EAC
AFM
answered on 07-Mar-24 20:25
Sir while calculating EAC what is the logic behind dividing the present value of cash outflows with PVAF?
latest answer
Pls call back... i tried reachin you
Prasoon Goel
CA Final
★ 920
5
498
Debt
AFM
answered on 07-Mar-24 09:44
When calculating Asset beta in the denominator why do we take Debt (1-t)? Debt is tax deductible?
latest answer
Yes. I realised as i started with Business valuation chapter today
shamanth rm
CA Final
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4
201
I'll 21
AFM
answered on 06-Mar-24 20:24
Sir when we finding NPV we considering probability factor but in worst best case we directly finding NPV without considering probability factor why sir it's like that is their any reason logic behind that
latest answer
Expected npv means considering probability Worst case nov is less than expected npv and no probability it required to be attached to it
HEMAVATHYSUBRAMANI SUBRAMANI
CA Final
★ 3K+
1
289
IRRM- Illustration 5
AFM
answered on 07-Mar-24 19:19
Sir, in this problem where we have computed that 7-12 month LIBOR is 7.805% and Bank lending rate given as 6.75% and hence we have concluded that there exists an arbitrage of lending @ 7.805 and borrowing @ 6.75%. However, further we have computed the implied rate p.a and compared to the actual annual rate thereby computed the arbitrage gain. Why have we computed 7.805% as we have not used this rate?
latest answer
Understood sir.
Suresh Avinash
CA Final
★ 3K+
5
347
Ratio analysis
Financial Management
answered on 06-Mar-24 19:24
How to calculate net assets?
latest answer
Ofcourse
lohith perumalla
CA Inter
★ 8K+
5
312
Ratio analysis
Financial Management
answered on 15-Mar-24 17:48
In this pq 3 of sm,why stick of finished goods isn't included in credit side of trading account
latest answer
Ok sir Thank you
Ramya Telikicherla
CA Final
★ 6K+
2
287
Cancellation and Delivery :Cancellation and Extension
AFM
answered on 06-Mar-24 16:24
Dear sir, When the Bank is going to charge the spot rate on the day of delivery after the due date within 3 days. What is the logic for the banker to enter another contract on the due date at optionally deliver at month end spot rates? What's the benefit the customer enjoys because of this facility provided by the bank due date + 3 days. when bank delivers the dollars at spot rate on delivery date after due date. In this particular illustration the spot rates are less costly for importer compared to agreed rates is this the reason for entering at spot rates it is same even when agreed rates are less costly compared to spot rate
latest answer
Bank cannot have its exposure open . it always needs to hedge it s exposure. If rule allows a customer to comeback within 3 days of expiry ( which in itself does not look logical) then bank has a contingent contract for 3 days which it needs to hedge itself against
Vanacharla Sai Pavan Kumar
CA Final
★ 8K+
3
351