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doubt
AFM
answered on 20-May-26 17:11
sir why are we multiplying 1+x instead of x. [Video Time Stamp: 08:00]
latest answer
Thank you sir
pavan kumar
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New contract
AFM
answered on 20-May-26 11:25
Sir, for the new contract entered will the bank again cover its position by interbank forward? Does the same process continues?
latest answer
Yes
SANJITHA
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79
Option exercise
AFM
answered on 20-May-26 08:26
Sir, if the question has mentioned the Spot rate as on July 31 and Sep 30 for unhedged currency, can we use that and decide whether to exercise the option or not? Since here it is mentioned to assume the forward rate as spot rate only for unhedged currency, are we not doing that? [Video Time Stamp: 19:21]
latest answer
Yes we do that only for options
SANJITHA
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136
Opening balance
AFM
answered on 20-May-26 08:24
Sir, how we have decided that the opening balance in Nostro Account is Credit balance? [Video Time Stamp: 06:51]
latest answer
When we use sentences like Balance in bank accounts is 10000 it means money belongs to you Balance in loan account is 10000 it means your outstanding loan is 10000
SANJITHA
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83
security valuation qst number 9
AFM
answered on 19-May-26 10:53
sir why we take 11.11 as eps1 its not clear. we determined eps on the basis of pe ratio and retention it is already computed which means it relates to year0 ?? [Video Time Stamp: 03:18]
latest answer
Question is ambiguous You can solve alternatively also and mention your assumption I mentioned it clearly in the video
saipriya v
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158
Advance Capital Budgeting Decisions - Illustration 13
AFM
answered on 18-May-26 15:41
In this illustration coefficient of variation is written as: CV = σ/ ENPV But in the solution no discounting or NPV calculation has been done. Only expected cash flow has been calculated using CF × Probability. So should the denominator technically be Expected Cash Flow instead of Expected NPV? [Video Time Stamp: 07:09]
latest answer
If ENPV is not available i.e outflows and project timeline are not available then ECF will have to be used
Madhu GK
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Borrowings
AFM
answered on 16-May-26 07:48
Sir, like borrowings made for hedging, can we also assume that ₹ equivalent export proceeds will finance both borrowing + interest. x + (x*8%*60/365) = 183,69,825.
latest answer
No you cannot make such assumption If you work out the way you were suggesting, borrowing will be for a lesser amount How do you know that it was for a lesser amount - nothing is mentioned in the question to indicate that
SANJITHA
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82
Issue
AFM
answered on 16-May-26 07:54
Hi sir, In this problem formulae is given wrong and answers are correct
latest answer
Not sure what you are referring to. Working in video is correct only
pavan kumar
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Doubt
AFM
answered on 16-May-26 09:57
Why present value factor applied to (R-C)(1-T) only. Why are we not applying the present value factor to depriciation *Tax [Video Time Stamp: 05:42]
latest answer
Ooh ok Will correct in book Thanks for highlighting Regret the inconvenience caused
pavan kumar
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105
Gain or loss
AFM
answered on 15-May-26 14:14
For example, a) Case 1: A ltd (Indian company) imported goods worth $ 100 on Jan 1 payable after 1 month on Feb 1. Spot USD-INR = 50, Spot on 1st Feb USD-INR = 55. Cash outflow = 55*100 = ₹ 5500. In this case, whether the difference in spot rates of ₹ 5 (55-50) amounting to ₹ 500 (5*100) is the loss to the importer because of change in exchange rate over the time? b) Case 2: Forward contract A ltd (Indian company) imported goods worth $ 100 on Jan 1 payable after 1 month on Feb 1. Spot USD-INR = 50, Spot on 1st Feb USD-INR = 55. Company A entered into forward contract to buy $ at 52. Cash outflow = 52*100 = ₹ 5200 In this case, whether the difference in spot rate and forward rate of ₹ 2 (52-50) amounting to ₹ 200 (2*100) is the loss to the importer? c) Case 3: Future Contract A ltd (Indian company) imported goods worth $ 100 on Jan 1 payable after 1 month on Feb 1. Spot USD-INR = 50, Spot on 1st Feb USD-INR = 55. Company A long i month futures contract to buy $ at 52. Gain on futures = (55-52)*100 = 3*100 = ₹ 300 Cash outflow = 55*100 = ₹ 5500 Net cash outflow = ₹ 5500-300 = ₹ 5200 In this case, whether the difference in cash outflow at spot and delivery i.e. 5200-5000 = ₹ 200 is the loss to the importer? Sir, if each is seen independently whether the loss is computed as per above or in different manner? [Video Time Stamp: 10:19]
latest answer
In all cases your loss computation is right
SANJITHA
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