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Derivatives Analysis - Options Binomial method
AFM
answered on 19-Sep-26 17:46
In the end while calculating delta why we considered (Cu)-(Cd) as 5 - 0 instead of 5.68 -1.03 ?
latest answer
That is technically incorrect but ICAI is following that . suggest you too follow ICAI method only for marks in exams 5 & 0 are intrinsic value of option at that nodes where as 5.68 and 1.03 are EV of PV of future pay offs
Sai Theja Vema
CA Final
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1
37
Capm vs er
AFM
answered on 19-Sep-26 10:28
Capm says 17.75% er says 19%(I'm expecting the return) How it is under value sir [Video Time Stamp: 04:37]
latest answer
Er va CAPM
Santoshkumar Kalisetti
CA Final
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28
Weighted Avg Mix Duration
AFM
answered on 19-Sep-26 09:22
Sir, in case the change is more than once (like the interest rate goes up to 10% then again 11%), then how do we find the optimum mix of the weighted average of the duration? how do we keep a mix such that we receive Rs.1 lakh at the end of 5 years?
latest answer
👍
G Mohammed Mushtaq
CA Final
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56
Dividend yield formula
AFM
answered on 18-Sep-26 15:38
Sir, Is the dividend yield calculated using the original investment cost, rather than the current market price or closing NAV? [Video Time Stamp: 11:02]
latest answer
You are right when we look at quoted market prices and dividend in the real world. But in these kinds of questions in MF / PM chapters, the yield is on original investment value because the goal here is to find out what is the overall return i.e price return + div return
Gokul
CA Final
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48
Computation of NAV - Dividend Equalization cases
AFM
answered on 18-Sep-26 13:21
Sir, While computing the NAV, we have not taken into account, the income which we have computed under part 1 i.e. 102.717 lakhs. Instead we have taken the income given in the question i.e. 22.95+34.425+45.45 = 102.825. As far as I understand the impact of dividend equalization is factored in the issue price and in the repurchase price. If that is true, should we not remove the impact of dividend equalization in the dividend paid amount shown in NAV computation i.e. 70% of 102.825 instead of what we have computed in the part 1 which includes dividend equalization income i.e. 70% of 102.717 = 71.9019 [Video Time Stamp: 21:09]
latest answer
Look at it from a CF perspective, what did you receive and what did you pay out Step 1: Income is fully received - accounted for Step 2: Dividend what is actually paid out accounted for Step 3 :At time of fresh investment or redemption, we have accounted for actual inflow from new investor or actual outflow to leaving investor What you are suggesting has already been done when we accountd for investments in and out in step 3 above
Gokul
CA Final
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52
Division of (Market price - Straight price)
AFM
answered on 17-Sep-26 15:36
Sir, in the p600+, in the answer of the (ii) point you've divided the (MP - Straight price) by 235 and also simultaneously you've divided it by 265! In the lecture you've said that, it shouldn't be divided by 235 Do i strike off the 235 part in the P600+ book ?? [Video Time Stamp: 06:09]
latest answer
Okay sir, thank you so much
G Mohammed Mushtaq
CA Final
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49
Derivatives - Futures
AFM
answered on 15-Sep-26 12:30
In question mentioned portfolio beta to reduce to .91. But after calculating, Total portfolio considering Nifty futures is not reduced to .91. In Target portfolio considered 5000 , why not (5000 - 1950)
latest answer
4550/5000 = 0.91 In denominator we do not take the impact of short portfolio at the time of shorting it because at that particular point of time there is no gain or loss on that nifty contract so quoted contract value is 1950 but if you unwind the contract you will not get any money back. Whereas for portfolio of equity shares, if you sell the shares you will get money of 5000
Sai Theja Vema
CA Final
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59
Doubt
AFM
answered on 14-Sep-26 14:29
Why risk free rate is taken as rate of interest for debt
latest answer
Ok sir
pavan kumar
CA Final
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58
Doubt
AFM
answered on 13-Sep-26 21:30
If we do individually what are the weights and why are they chosen? [Video Time Stamp: 10:12]
latest answer
Ok sir
pavan kumar
CA Final
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4
67
Doubt
AFM
answered on 13-Sep-26 20:02
Why are high beta stocks chosen in bull phase and low beta stocks for bear phase [Video Time Stamp: 08:33]
latest answer
Thank you sir
pavan kumar
CA Final
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72