Please check Part (iii) of Question-56, Page No.-72 of SSEI Study Material. In Part (iii) of the sum, uncovered portion of $3,647 is hedged through "Forward Cover. Although it is the sum of Foreign Currency payable hedged through Options, yet can we apply the similar technique to hedge the uncoveredRead more
Please check Part (iii) of Question-56, Page No.-72 of SSEI Study Material. In Part (iii) of the sum, uncovered portion of $3,647 is hedged through “Forward Cover.
Although it is the sum of Foreign Currency payable hedged through Options, yet can we apply the similar technique to hedge the uncovered portion of €27,120.25 in the attached sum?
If the Cash Flows for infinite times are different like, C1=100, C2=150, C3=50, C4=80,… Instead of Infinite G.P. series, what will be the mathematical explanation to derive the formula?
If the Cash Flows for infinite times are different like,
C1=100, C2=150, C3=50, C4=80,…
Instead of Infinite G.P. series, what will be the mathematical explanation to derive the formula?
If r=100%, t=1, Rs.1 becomes Rs.2 after annual compounding. If r=18%, t=1, Rs.1 becomes Rs.1.18 after annual compounding. According to the formula of continuous compounding that is e^(r*t), Why 2^(0.18*1) is not equal to 1.18? Through the formula, e^(r*t) If r=18%, t=1, If we take upto 6 deciRead more
If r=100%, t=1, Rs.1 becomes Rs.2 after annual compounding.
If r=18%, t=1, Rs.1 becomes Rs.1.18 after annual compounding.
According to the formula of continuous compounding that is e^(r*t),
Why 2^(0.18*1) is not equal to 1.18?
Through the formula, e^(r*t)
If r=18%, t=1, If we take upto 6 decimal place, then;
{(1+1÷1000000)^1000000}^(0.18*1) = (1+0.18÷1000000)^1000000
Why it does not match in case of annual compounding?
Beta Management
Yes, it covers the complete question.
Yes, it covers the complete question.
See lessDerivatives (Currency Futures)
Please check Part (iii) of Question-56, Page No.-72 of SSEI Study Material. In Part (iii) of the sum, uncovered portion of $3,647 is hedged through "Forward Cover. Although it is the sum of Foreign Currency payable hedged through Options, yet can we apply the similar technique to hedge the uncoveredRead more
Please check Part (iii) of Question-56, Page No.-72 of SSEI Study Material. In Part (iii) of the sum, uncovered portion of $3,647 is hedged through “Forward Cover.
See lessAlthough it is the sum of Foreign Currency payable hedged through Options, yet can we apply the similar technique to hedge the uncovered portion of €27,120.25 in the attached sum?
Forex (Real Rate of Appreciation/Depreciation)
Instead of doing "PPP", if we do; [[[{(43.85 - 42.50)÷43.85} - 1]÷1.09] + 1] = 11.08% That is Real depreciation on ₹. Will it be conceptually correct?
Instead of doing “PPP”, if we do;
See less[[[{(43.85 – 42.50)÷43.85} – 1]÷1.09] + 1]
= 11.08%
That is Real depreciation on ₹.
Will it be conceptually correct?
Portfolio Management
In the 4th column of the table, Instead of taking, Expected Yield = 1. {(220 - 220)+20} = 20 2. {(250 - 220)+20} = 50 3. {(280 - 220)+20} = 80 Can we take, Expected Yield (%) = 1. [{(220 - 220)+20}÷220]×100= 9.09% 2. [{(250 - 220)+20}÷220]×100= 22.73% 3. [{(280 - 220)+20}÷220]×100= 36.36%
In the 4th column of the table, Instead of taking,
See lessExpected Yield =
1. {(220 – 220)+20} = 20
2. {(250 – 220)+20} = 50
3. {(280 – 220)+20} = 80
Can we take,
Expected Yield (%) =
1. [{(220 – 220)+20}÷220]×100= 9.09%
2. [{(250 – 220)+20}÷220]×100= 22.73%
3. [{(280 – 220)+20}÷220]×100= 36.36%
Forex + Portfolio Management
I had attached the Solution and posted the query again.
I had attached the Solution and posted the query again.
See lessPortfolio Management
Please find the attachment.
Please find the attachment.
See less
Standard Costing
In the denominator why we are taking log2, why not log of any other real number? Please explain this.
In the denominator why we are taking log2, why not log of any other real number?
Please explain this.
See lessMathematical Explanation
The series is neither in AP nor in GP. Cash Flows are different in every year and continued for infinite times.
The series is neither in AP nor in GP. Cash Flows are different in every year and continued for infinite times.
See lessPerpetuity
If the Cash Flows for infinite times are different like, C1=100, C2=150, C3=50, C4=80,… Instead of Infinite G.P. series, what will be the mathematical explanation to derive the formula?
If the Cash Flows for infinite times are different like,
See lessC1=100, C2=150, C3=50, C4=80,…
Instead of Infinite G.P. series, what will be the mathematical explanation to derive the formula?
Continuous Compounding
If r=100%, t=1, Rs.1 becomes Rs.2 after annual compounding. If r=18%, t=1, Rs.1 becomes Rs.1.18 after annual compounding. According to the formula of continuous compounding that is e^(r*t), Why 2^(0.18*1) is not equal to 1.18? Through the formula, e^(r*t) If r=18%, t=1, If we take upto 6 deciRead more
If r=100%, t=1, Rs.1 becomes Rs.2 after annual compounding.
If r=18%, t=1, Rs.1 becomes Rs.1.18 after annual compounding.
According to the formula of continuous compounding that is e^(r*t),
Why 2^(0.18*1) is not equal to 1.18?
Through the formula, e^(r*t)
If r=18%, t=1, If we take upto 6 decimal place, then;
See less{(1+1÷1000000)^1000000}^(0.18*1) = (1+0.18÷1000000)^1000000
Why it does not match in case of annual compounding?