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Derivatives analysis and valuation Illustration 4 on real options
AFM
answered on 11-May-25 12:05
It is given that the current yield on treasury bonds i.e. Rf for 15 years duration is 7.8%. So in the black scholes model while deriving d1 why do we need to again multiply by time t is the rate is already for 15 years. And if we have to what is this expected cost of delays that we are subtracting from Rf.
latest answer
Int rate is always per annum Explained dividend based Black scholes model in class Pls go through that
Valli Kotapati
CA Final
★ 5
1
176
Portfolio Management
Auditing
answered on 13-May-25 09:26
Mam Can CA in Service provide Portfolio Mgt Services ? Will This might happen in the case of CA being Investment Banker?
latest answer
In service he will be allowed provided he fulfils all the required conditions.
Harini Desu
CA Final
★ 2K+
1
233
Perpetual cash flow
AFM
answered on 11-May-25 10:33
Sir, can you explain the difference between perpetual and terminal cash flow?. What do they mean by perpetual cash flow at the end of year 5? and why is it so high from the cash flow of year 5?
latest answer
Perpetual means that it will continue forever terminal means last When we value a share, since a company can exist forever, we value all perpetual CF at the end of explicit period and arrive at a value called terminal value Perpetual cashflows may be growing or not growing Terminal CF means cash flow for last period. It can be an a single value like say salvage value of machinery once a project is complete or it can be PV of all Perpetual cashflows
Nitin Raj
CA Final
★ 270
1
197
Esop
Accountancy
answered on 11-May-25 06:39
Is esop there in ca inter syllabus
latest answer
No
Sushmita Chowdhury
CA Inter
★ 2K+
1
236
Overhead
Costing
answered on 14-May-25 11:57
Can anyone explain me this question
latest answer
Pls share the question.
Aswin A
CA Inter
★ 0
1
201
National income
Economics
answered on 12-May-25 09:23
What should be the answer to this question?
latest answer
Ans: C
Asmita Kar
CA Foundation
★ 7K+
1
210
National income
Economics
answered on 13-May-25 11:47
What is the answer to this question? And what should be the treatment for transfer payments?
latest answer
Okay sir
Asmita Kar
CA Foundation
★ 7K+
4
199
Rajeev case
Corporate & Other Laws
answered on 12-May-25 12:53
Capacity of parties I entered into contact with Rajeev for sale of his house for ₹2.5cr. Rajeev is my best friend since my school time. But I didn't knew that he has done a murder and he is on bail and contract has been done stating that 50% has to be done at time of contract made and remaining 50% at time of registration and handing the keys of house to me. When I went to office for registration with Rajeev and my lawyer noticed and told that he is a person done a murder and is on bail and has not proven guilty but prove are against him. In this case can I end the contact and can recover by money which I have paid to him during at time of contract.
latest answer
Yes, you can terminate the contract and seek a refund if Rajeev intentionally concealed his criminal background, as this amounts to misrepresentation under the Indian Contract Act, 1872. Although he is not yet proven guilty, hiding such material facts that could affect your decision makes the contract voidable at your option. You can send a legal notice and file a recovery suit if needed.
Gurukanta Singh
CA Foundation
★ 19K+
1
179
Finished goods
Financial Management
answered on 10-May-25 09:07
Hi sir , Sir, did you make an assumption for finished goods as closing stock of finished goods in computation of statement of working capital requirement , as there is no further information related to maintain FG for specific time ? TIME STAMP →24:50 — 25:00
latest answer
Yes
Nagachaitanya Nomula
CA Final
★ 8K+
1
184
Work in progress.
Financial Management
answered on 10-May-25 09:06
Hello sir, Hope you all are fine. My question is that when we are computing working capital under this method , Raw material is used again in calculation of WIP even RM is calculated seperately as point (1) in solution and it looks like double counting but in reality are we trying to maintain all types of Stock (RM , WIP, & FG ) at same time at given price and time limit and these 3 are irrelevant to each other ? Is my understanding correct sir ?
latest answer
Absolutely right
Nagachaitanya Nomula
CA Final
★ 8K+
1
265