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Pricing of an Option

AFM

answered on 16-Oct-25 19:18

Sir, in the previous Option Pricing video, we calculated the price of the option by taking the present value of the expected payoff. In that case, the expected payoff was computed as “Strike Price – Expected Value of the Share at Maturity” (i.e., Sum of each possible share price × Probability). However, in this question, the expected payoff is calculated as “Sum of (Strike Price – Each Expected Price) × Probability.” What is the difference between these two approaches, sir?

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Option pricing

Murali Thripuraboina

Murali Thripuraboina

CA Final

3K+

1

94

ROR/RNOR u/s 6(6) for individuals

Direct Taxation

answered on 16-Oct-25 19:36

Sir, but according to ICAI SM conditions for individuals are different u/s 6(6). [Video Time Stamp: 09:16]

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Please ignore the query, later on I got it Sir.

Rahul Anand

Rahul Anand

CA Inter

6K+

1

84

Method to compute EAC

AFM

answered on 16-Oct-25 16:56

Sir, can we also compute EAC as how you have done in Ill 34? I worked out like that and found at the end of year 1 EAC is Rs.58506 at y2 is rs.57065 and at y3 is rs.57970. By doing that method as well the EAC is less at the end of y2 only. Is it correct method to follow in this question?

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In these ACBD questions they have done using two methods. Some question by method 1 and some questions by method 2 Ideally both should give same final result in terms of decision, but from computation perspective they both are giving slightly diff answers. Some amount of variance could be due to rounding off issues. Ideally should not be an issue but we dnot know what exam key will have in terms of working. That is the only worry

Pradeepa Narayanan

Pradeepa Narayanan

CA Final

5K+

1

125

Debt Coverage Ratio

Financial Management

answered on 16-Oct-25 09:01

Interest and Instalment what are includes Explain Sir [Video Time Stamp: 03:18]

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Coverage

V Ajith Kumar

V Ajith Kumar

CA Inter

1K+

1

117

EXTERNAL RISK - LONG TERM

Strategic Management

answered on 17-Oct-25 17:46

A Warm Good morning sir, I have a doubt in this, Just above the dynamic table of risk factor, we have learned in Issues to consider for Strategic analysis, That, Strategies are series of small decisions taken time to time over an extended period of time. Which means, under stategic planning, the decision is made time to time with the effect of chaning environment, Then how can the external risk classifies our stategy as obsolete in long run, where no strategic decision is permanent, nor it is made for long period. I agree that the decision we take today impacts and shapes the strategic intent of the company, but the decision does not come along with us for long period, it gets altered time to time depending upon the changing environment. Please explain [Video Time Stamp: 10:09]

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ohhh ok sir.

Vinod Kumar

Vinod Kumar

CA Inter

11K+

2

92

SA 210 - Engagement Letter

Auditing

answered on 17-Oct-25 09:02

As per SA, The Engagement letter is issued by Auditor. In this question , MEA is giving such EL to Auditor. Is this the right way Mam? As there are no references to such in solution as well [Video Time Stamp: 00:04]

latest answer

Management send appointment letter. Auditor sends the engagement letter. Here the interpretation should be - made by the auditor

Vijay Ramesh

Vijay Ramesh

CA Final

985

1

100

Model Test Papers

Exams

answered on 16-Oct-25 15:06

What are model test papers by ICAI .It was not earlier has it launched for may2025 for 1st time.The oneby icai is of 702 pages .are we supposed to solve it along with RTP,MTP

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It is best to solve model papers

Gauri Shete

Gauri Shete

CA Final

4K+

1

146

Retrospective application

Financial Reporting

answered on 17-Oct-25 16:55

Sir, wherever we have learnt about retrospective application to be given, even in other standards as well, does that lead to file revised ITR?

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The income is to be computed as per income tax act following ICDS. The income and expenditure would be calculated accordingly for income tax purposes. If the taxable income changes due to say for e.g a prior period error, the company can revise the return if it is within the stipulated time frame.

pooja lakshmi

pooja lakshmi

CA Final

2K+

1

100

Question Type NEW

Financial Management

answered on 15-Oct-25 21:18

Honestly sir, the solution is not at all going inside my brain, maybe because i have already consumed so much of formula and solutions previously from this chapter, And this seems to be similar with existing solutions previously done from this chapter but...Different. I can only pray to god, not to give questions of this type, as this will consume min of half hour to understand/ recall the solution itself. Anyways... Moving Forward. [Video Time Stamp: 00:01]

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Hmm

Vinod Kumar

Vinod Kumar

CA Inter

11K+

1

97

Journal entries

Costing

answered on 17-Oct-25 09:44

Can I write journal entries and then post it to the ledger heads?

latest answer

Yes you can. But in the exam if they din't ask the journals then it is no need. It is a wastage of time. But for preparation you can do

Nivya jasmine

Nivya jasmine

CA Inter

320

1

104