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Value of Call Option

AFM

answered on 20-Oct-25 13:45

Sir, 1. Value of Call option on Day 0 = Rs. 10(as given in question) and Value of call option on Maturity(after 4 mths) was Zero. Am i right sir? 2. And if Value of Call option on Maturity was Zero (i.e St-X), then how would we get PV of Expected Pay off (St-X) as Rs. 10 (Which is given in question as Value of Option on Day Zero(Which is Premium))? Please clarify Sir. [Video Time Stamp: 10:18]

latest answer

As on Day zero PV of Option pay off is 10 There are various probabilities of closing price after 4 months In one case after 3 months the ST or CP = 150 same as Strike price X So then value of option is zero probabilities of closing share price are not static neither is the Value of the option On day zero there is some info. After 4 months a lot could have changed leading to a diff price that expected

Murali Thripuraboina

Murali Thripuraboina

CA Final

3K+

1

120

Rounding off

Financial Management

answered on 19-Oct-25 18:36

Sir In AFM and FR exam how many number after point i could round off incase if they didnt mention in the question?

latest answer

Thank you very much sir

sabarish s

sabarish s

CA Final

2K+

2

139

effective capital and maximum amount of monthly remuneration

Accountancy

answered on 21-Oct-25 17:12

is the calculation of effective capital and maximum amount of monthly remuneration under preparation of financial statements in the syllabus for us?

latest answer

No longer applicable.

Ritu Kotian

Ritu Kotian

CA Inter

19K+

1

160

Buy or sell.

AFM

answered on 20-Oct-25 15:04

Sir, How to determine which currency we have to sell or Buy.?? [Video Time Stamp: 15:50]

latest answer

Okay Sir. Got it. Thank you.

K Vamshi

K Vamshi

CA Final

14K+

6

141

Date-20-9-X1 Return from Dept, material of M & Co.

Costing

answered on 27-Oct-25 20:00

Sir, in the absence of info. here, can't we apply the same price as receipt from M & Co.(on 15-9-X1), to the material returned? [Video Time Stamp: 18:40]

latest answer

ok Sir

Rahul Anand

Rahul Anand

CA Inter

6K+

2

123

Internal reconstruction

Accountancy

answered on 24-Oct-25 14:52

Please explain (2) adjustment and also in (6) there’s no journal entry and didn’t quite understand the balance used for trademarks and goodwill

latest answer

Preference shares - dividend no adjustment as nothing is paid. Reduce Rs. 50 preference shares and replace with 4 Pref share of Rs. 10 (40) and 3 equity shares of 5. Dr. PSC 50 Dr Capital Reduction 5 Cr. New PSC 40 Cr ESC 15 The balance left in capital reduction account after writing off PL dr balance and reduciton in plant value is to used to write off goodwill and trademarks.

Ritu Kotian

Ritu Kotian

CA Inter

19K+

1

145

Setup in India, yet not considered for NR as taxable Income, why?

Direct Taxation

answered on 27-Oct-25 22:37

Sir, the profession was in Malaysia but the setup was in India. So shouldn't it be considered as Indian income earned by NR? [Video Time Stamp: 01:55]

latest answer

Ok Sir.

Rahul Anand

Rahul Anand

CA Inter

6K+

2

128

Interest on debentures

Accountancy

answered on 24-Oct-25 14:54

in question 1, why is the last point on interest on debentures ignored? [Video Time Stamp: 34:12]

latest answer

If it paid on 31st MArch means, nothing is outstanding.

Ritu Kotian

Ritu Kotian

CA Inter

19K+

1

138

Doubt About IDT Batch Applicability (May 2026)

Indirect Taxation

answered on 27-Oct-25 22:25

Hello Sir, I’m currently preparing for my CA Final Group 2 exams scheduled in May 2026, and I’m planning to purchase your IDT classes. Before enrolling, I wanted to confirm a few details: Which Finance Act and amendments are covered in your current batch? Will the Finance Act 2025 amendments (applicable for the May 2026 attempt) be provided later as amendment lectures? Thank you,Sir.

latest answer

Welcome.

K Vamshi

K Vamshi

CA Final

14K+

3

325

Call option

AFM

answered on 17-Oct-25 12:46

Sir, We have to convert premia at spot price only right. In Illustration 74 also spot price only we did. But In this we considered forward rate. [Video Time Stamp: 18:43]

latest answer

I’ll 75

Nivethithaa S

Nivethithaa S

CA Final

2K+

1

129