wrong calculation

AFM

Hi sir, i feel there is a calculation error here. please correct me if iam wrong. the expected pay off i.e 7.6*76% = 5.776. but you mentioned it as 5.75 so that the PV of it also comes to 5.776/1.05 = 5.50. but i could not understand how in excel the answer got wrong while you were doing. please let me know whether what i did is correct or wrong Video Details ------------- Advanced Financial Management - AFM Derivatives Analysis and Valuation #92. Binomial Method - Two Period

B. Dinesh

CA Final

★ 3K+

20-May-24 12:33

359

Answers (1)

I made working in excel exact values are P = 75.636% Rs.5.7483 and PV is 5.467 These are excel values and hence you may get minor differences when you solve by taking no decimals

Sriram Somayajula

Admin

20-May-24 13:22