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Options trading

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answered on 16-Nov-23 13:10

Sir can you please explain how these options contract works practically in market Or atleast share some resources to know more about this

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Thank you sirr

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

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523

Formula

Financial Management

answered on 17-Nov-23 10:34

When did (n+delta n)-I+E / 1+ke is used and when did (n+delta n)×mp is used

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First Formula is used when one has to compute market value of firm when dividend is paid or not paid - usually in both cases MV will be the same. Can you share us a question where the second formula is used - we can guide you better?

creative geek

creative geek

CA Final

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502

rates

Economics

answered on 17-Nov-23 14:21

Is this rates changed or the same rate applicable for nov23

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Unless they mention some other rate in the Q, you can use these

Kaleesh Waran B

Kaleesh Waran B

CA Inter

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424

Capital structure

Financial Management

answered on 16-Nov-23 09:05

While caluclation of eps how to find only exi sting or only new or both new + existing?

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It depends on the question.

OMKAR REDDY

OMKAR REDDY

CA Inter

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476

FOREX

AFM

answered on 16-Nov-23 06:42

Generally direct quotes are quoted as one unit of foreign currency expressed in domestic currency. Ex : USDINR but there are exceptions like GBP ,AUD,EUR. so in problems if it states USD/GBP , for britan resident it should be indirect quote right ? But in illustration 29, USD/GBP has been considered as direct quote. ideally it is indirect quote. so how do we know whether to treat it as direct or indirect quote ?

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Thank you sir

Enuguru Sai Nithin

Enuguru Sai Nithin

CA Final

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FOREX

AFM

answered on 16-Nov-23 13:08

In the problem, actual forward is greater than theoretical forward ,( .780 >.779) , so as per logic buy cheap , sell costly , so rather than selling DEM @.780 after 3 months , can't we buy DEM @ .779 after 3 months ? Because we are buying at cheaper rate only. I had figured a logic , why in the problem it is considered as sell DEM ,pls correct me if it is wrong. Forward premia is less than intrest differential so we need to borrow foreign currency, here foreign currency is DEM, so if this is the 1st leg , if we borrowed foreign currency, ultimately we have had to sell them after 3 months. So is this why we are selling DEM rather than buying ? so will buying and selling depends on premia and intrest differential ?

latest answer

Your logic is absolutely right. Buying and selling depends on Premia and int diff- however I intentionally did not explain it that way because a lot of students may get confused and simpler way I thought of explaining is buy cheap and sell dear - however in one of the videos, I do remember mentioning it

Enuguru Sai Nithin

Enuguru Sai Nithin

CA Final

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437

Syllabus Reduction in Chaos

Accountancy

answered on 15-Nov-23 20:14

Sir I see lots of chapters got reduced in new syllabus of CA Intermediate 2024, How do we study those chapters in future ? (out of passion in subject accounts ) Will they be available in Indigolearn? First of all my important doubt is why ICAI omitted all those chapters,do they want the student to learn on their own just like the case of self paced modules ? Are those chapters of any use in articleship or new syllabus of final ? Any testing will be made by ICAI on those chapters cunningly in new syllabus just to make paper tough ?

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Thank you so much sir

Harish Chandar T

Harish Chandar T

CA Inter

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578

Ca inter

Others

answered on 15-Nov-23 20:09

Audit , sm,fm - fastrack se ho jayega kya?

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For May 24??

Pooja Chavan

Pooja Chavan

CA Inter

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479

Fast track courses

Others

answered on 15-Nov-23 16:47

Are Fast track recorded courses available for CA Final

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We have free revision classes for AFM available on our YT channel https://www.youtube.com/playlist?list=PLuL76M8M-m1TwW6W8Xz1v9sBbRyqvR1nx FR revision live class that ended before exams https://www.youtube.com/playlist?list=PLuL76M8M-m1TV9sLqhp2x4K2riBTPgo98

Sindhu Machado

Sindhu Machado

CA Final

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551

Futures and forwards contract

Others

answered on 15-Nov-23 16:40

Are price pre determined in both futures and forwards contract??I'm confused can anyone tell the difference between these 2

latest answer

Yes it fluctuates daily. It fluctuates becuase it is traded in exchange Eg: You agree to buy 1 Kg of gold from me at 60 lacs on say 31st dec 20x1 Tomorrow morning say india bans all gold imports and there for any new contract entered into from this day onwards for delivery of gold on 31st dec 20x1 the gold price is not 60 lacs but 1 crore When there is a new information on subsequent days new contracts for delivery of gold on 31st de c 20x1 will trade at new price. Hence teh price of futures fluctuates with elapse of time based on new info

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

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