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No of Days

AFM

answered on 24-Jan-25 07:21

Sir in the earlier problems No of days you considered is by excluding either opening day or closing day, say in class problem 19, we considered from sep 15th to dec 15th as 16 +31+30+14 = 91 days, we excluded the last trading of december, and in ICAI material illustration 11, they have considered 58 days (excluding one day), so in exam if need to be done on days basis, then how to consider for futures purpose ?

latest answer

I explained how it works logically in real world Follow ICAI method for exam

Hemachandra D

Hemachandra D

CA Final

9K+

1

196

IRRM - hedging through cap

AFM

answered on 24-Jan-25 08:31

In ILL 13, loan period = 24 months (6 months LIBOR i.e. 4 periods). Reset reset is given for upcoming 3 periods. Option Premium = Rs. 1,50,000 PVAF of premium (3.5%, 4 period) calculated = 40,837. Why 4 periods is considered for discounting? Is it arrived assuming that the cap is purchased before the first period, and that the net effect of interest rate risk heading is specifically asked over the given three periods, excluding the first? Can we solve it making note that cap is bought on 1st period and duration of cap = 18 months (3 periods). PVAF of premium = 150000/PVAF(3.5%, 3 periods) = 53540

latest answer

Thankyou sir

Durai Murugan

Durai Murugan

CA Final

470

2

213

Theoretical value of futures

AFM

answered on 24-Jan-25 07:19

sir when they ask theoretical value of futures, should we do conclude with 20,000 as answer or 20000*50 = 10 lakhs (considerinng the lot size as well)

latest answer

They are asking for single unit and not full lot

Hemachandra D

Hemachandra D

CA Final

9K+

1

194

as 12

Accountancy

answered on 31-Jan-25 10:16

sir second question specifically stated that assuming that the company did not charge any depreciation for the year 2019-20. but solution was stating that considered refund of grant at beginning of June month and depreciation for two months already charged. Alternative answer considering otherwise also possible. why did the solution is assuming another when question clearly states sir i didnt considered 2 months depreciation as per the question so will my answer is correct

latest answer

the company has not charged. Now we need to charge

N.V Karthikeyan

N.V Karthikeyan

CA Inter

1K+

5

316

Fixed Intial and Maintaince Margin

AFM

answered on 24-Jan-25 07:18

In this question unlike other examples where Required margin will be applied as % on daily closing levels, in this case its a problem considering the meam=n + SD, so the Margin is fixed level Right ?

latest answer

Mean and sad keep chafing as days go by Typically there margin levels are changed once a month /2 when there is low volatility If volatility is high exchanges can change is for lower frequency also

Hemachandra D

Hemachandra D

CA Final

9K+

1

250

ITT & GMCS

Others

answered on 24-Jan-25 08:49

Sir I had cleared my CA Inter in Nov 23, and I registered for a 2-year articleship. Am I eligible for the ITT & GMCS course throughout the articleship period?

latest answer

Yes

Atharv Toshniwal

Atharv Toshniwal

CA Final

7K+

1

229

SPOM EXAM

Exams

answered on 23-Jan-25 22:50

Sir I had given 8 papers in ca intermediate exam in Nov 23 & I have been registered for 2 year articleship. Set C & Set D is exempt for me or not?

latest answer

Yes it's exempt . U have to write only set A and B...

Atharv Toshniwal

Atharv Toshniwal

CA Final

7K+

1

253

EQ VALUATION

AFM

answered on 24-Jan-25 08:49

WHAT IS NON CASH CHANGE IN WORKING CAPITAL TREATMENT IN FCFF ?

latest answer

Sure

manjay tiwari

manjay tiwari

CA Final

40K+

6

184

Alternative for portfolio beta after months

AFM

answered on 20-Mar-25 06:16

Sir portfolio Beta after 4 Months we can also do using wegithed beta formula right ? excluding the Nifty Futres contract value in the denominator, (117.84*1.4 + 10 *0 + 128.3286*1)/127.84

latest answer

Depends on question Weighted method more preferable usually But in some questions when that data is unavailable you use the other method

Hemachandra D

Hemachandra D

CA Final

9K+

3

209

security valuation (equity)

AFM

answered on 23-Jan-25 21:39

is enterprise value affected by DEPRICIATION POLICY

latest answer

No

manjay tiwari

manjay tiwari

CA Final

40K+

1

203