Just altering the question to clear the small doubt. If the current price is 500 and the longer-term 750 in that case, the answer would be Long 3000 contracts and short 2000 contracts to maintain the same exposure. Is it right?
Just altering the question to clear the small doubt.
If the current price is 500 and the longer-term 750
in that case, the answer would be
Long 3000 contracts and short 2000 contracts to maintain the same exposure.
Hi Ishaan, In my opinion, only depreciation will be applied to whichever asset has a useful life. In the Land case, depreciation will only be charged if a mining or oil reserve is built there otherwise it has infinite useful life. So to answer your question, Yes depreciation will be charged on the bRead more
Hi Ishaan,
In my opinion, only depreciation will be applied to whichever asset has a useful life.
In the Land case, depreciation will only be charged if a mining or oil reserve is built there otherwise it has infinite useful life.
So to answer your question, Yes depreciation will be charged on the building only because it has a limited useful life.
When the yield rises, it will have much effect in the longer duration, leading to falling in the price of the bonds. So through this analogy, we have to move out from the P2. Now coming to the part, about how they decided to sell only 15 million only The total market value of both portfolios- is 109Read more
When the yield rises, it will have much effect in the longer duration, leading to falling in the price of the bonds. So through this analogy, we have to move out from the P2.
Now coming to the part, about how they decided to sell only 15 million only
The total market value of both portfolios- is 109 Million
On the higher side, you can keep 60%, which comes to 65.4 Million
Portfolio 1 market is 50.3 million, so the rest comes from the selling of the P2
This will make the portfolio 65.4 which is 60% of the total market value as decided at the start.
The 3rd option, is written 1 Year forward rate 1 year from now only. but in the write-up above the photo, you have written 1 year forward rate 2 years from now which is where you got confused.
The 3rd option, is written 1 Year forward rate 1 year from now only.
but in the write-up above the photo, you have written 1 year forward rate 2 years from now which is where you got confused.
FRA SPE doubt
Screenshot attached
Screenshot attached
See lessPlease explain this question
Just altering the question to clear the small doubt. If the current price is 500 and the longer-term 750 in that case, the answer would be Long 3000 contracts and short 2000 contracts to maintain the same exposure. Is it right?
Just altering the question to clear the small doubt.
If the current price is 500 and the longer-term 750
in that case, the answer would be
Long 3000 contracts and short 2000 contracts to maintain the same exposure.
Is it right?
See lessPrivate Equity Investments
Thanks, Naman for the explanation. But could you please elaborate or explain it in easy language?
Thanks, Naman for the explanation.
But could you please elaborate or explain it in easy language?
See lessReal estate depreciation
Hi Ishaan, In my opinion, only depreciation will be applied to whichever asset has a useful life. In the Land case, depreciation will only be charged if a mining or oil reserve is built there otherwise it has infinite useful life. So to answer your question, Yes depreciation will be charged on the bRead more
Hi Ishaan,
In my opinion, only depreciation will be applied to whichever asset has a useful life.
In the Land case, depreciation will only be charged if a mining or oil reserve is built there otherwise it has infinite useful life.
So to answer your question, Yes depreciation will be charged on the building only because it has a limited useful life.
I hope it helps.
See lessPORTFOLIO BALANCING
When the yield rises, it will have much effect in the longer duration, leading to falling in the price of the bonds. So through this analogy, we have to move out from the P2. Now coming to the part, about how they decided to sell only 15 million only The total market value of both portfolios- is 109Read more
When the yield rises, it will have much effect in the longer duration, leading to falling in the price of the bonds. So through this analogy, we have to move out from the P2.
Now coming to the part, about how they decided to sell only 15 million only
The total market value of both portfolios- is 109 Million
On the higher side, you can keep 60%, which comes to 65.4 Million
Portfolio 1 market is 50.3 million, so the rest comes from the selling of the P2
This will make the portfolio 65.4 which is 60% of the total market value as decided at the start.
I hope the write-up helps
See lessArbitrage Free Valuation Framework
The 3rd option, is written 1 Year forward rate 1 year from now only. but in the write-up above the photo, you have written 1 year forward rate 2 years from now which is where you got confused.
The 3rd option, is written 1 Year forward rate 1 year from now only.
but in the write-up above the photo, you have written 1 year forward rate 2 years from now which is where you got confused.
See lessCredit analysis Models
I have doubts in the above write-up, not in the diagram.
I have doubts in the above write-up, not in the diagram.
See lessConvertible bonds
Thanks!
Thanks!
See lessConvertible bonds
Could you elaborate it, difficult to understand?
Could you elaborate it, difficult to understand?
See lessCredit analysis model
Hi Dhwani Thanks for Answering the questions. Apart from these assumptions, do we have any other assumptions so we won't skip them?
Hi Dhwani
See lessThanks for Answering the questions.
Apart from these assumptions, do we have any other assumptions so we won’t skip them?