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Investment value
AFM
answered on 29-Sep-26 11:19
Sir, Is it not the premium paid, the investment value for options? Or what is the rationale behind taking Gross payoff as the Investment value? Kindly Clarify [Video Time Stamp: 09:25]
latest answer
We are looking at value at that point - initial prem paid / received is treated as sunk cost / already received income and hence not considered Which is why we added another table showing net investment value after subtracting / add premia amount in the next table
Gokul
CA Final
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78
Nifty and equity change
AFM
answered on 29-Sep-26 08:06
Sir, in the sub question five, it is said that there is 2% rise in nifty and we also take change in equity portfolio as 2%, why? It should be 2*2=4 know? [Video Time Stamp: 23:53]
latest answer
Because stock and nifty returns are linked through beta Beta is sensitivity of stock returns to nifty returns If nifty has a return of x then stock will have return of beta x
Amrutha Murali
CA Final
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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
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55
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]
latest answer
Yes
Santoshkumar Kalisetti
CA Final
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Illustration - 6a
AFM
answered on 27-Sep-26 14:59
Sir, in the third question, nowhere is it mentioned that the return calculated should be considered as the nominal return. So, why are we treating the return calculated in the first step as the nominal return for calculating the real return?
latest answer
Usually return is quoted nominal
Pavan Naidu ca
CA Final
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AFM notes
AFM
answered on 28-Sep-26 08:58
It shows error while opening pdf
latest answer
Ok.. Sir..
Gomathi K
CA Final
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31
Forward contract
AFM
answered on 27-Sep-26 12:08
I understood the concept well but one query while solving is how to identify which is the domestic currency and foreign currency. Is there any specific assumption to be taken? [Video Time Stamp: 12:52]
latest answer
usually all quotes are direct for all currencies other than EUR / GBP / AUG / NZD & CAD So all these quotes will be number of USD per using of any of the above currencies For all other currencies exchange rate quotes are units of the home currency per unit of USD In case of cross currency quotes eg INR and SGD, question will specify where the merchant located and what is the quote type
Bharathkumar Sivakumar
CA Final
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Summary
AFM
answered on 27-Sep-26 09:04
Is this summary correct. Can we understand in this way [Video Time Stamp: 00:05]
latest answer
Ok sir
Lavanya Ravi
CA Final
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34
Forex
AFM
answered on 25-Sep-26 12:16
In 3rd point the question is encashing usd to inr spot or after 2 months but in solution we are converting inr to usd after 2 months so which way is correct the as will different in both cases
latest answer
Even if u don’t convert back to usdargument sake u don’t convert int to USF and retain it as int after 2 months in one alternative where ur had placed an inr deposit Compare the above amt with usd to inr conversion after 2 months and see- this amt will be higher than amt in prev para Answer will not change
Seetha Ram
CA Final
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35
Doubt
AFM
answered on 25-Sep-26 09:50
Why are futures not affected by volatility. [Video Time Stamp: 01:49]
latest answer
Volatity in spot changes futures prices. Future volatility is not accounoted for in it
pavan kumar
CA Final
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32