C is not the correct answer. The ander is B coz if IRR exceeds coc it's a good thing na. It means the NPV will be positive & it'll increase shareholders' wealth... It's not a problem at all...but my question is that Option C is wrong conceptually...
C is not the correct answer. The ander is B coz if IRR exceeds coc it’s a good thing na. It means the NPV will be positive & it’ll increase shareholders’ wealth… It’s not a problem at all…but my question is that Option C is wrong conceptually…
But sir value can be negative for the buyer of the options(C+ & P+) Like in question no. 19 sir said.. the value of the options can never be negaitve.. so is it so that we always calculate value from seller's view point... .
But sir value can be negative for
the buyer of the options(C+ & P+)
Like in question no. 19 sir said.. the value of the options can never be negaitve.. so is it so that we always calculate value from seller’s view point… .
Thank you so much sir. I got too much engrossed and ended up messing it. As I relaxed my mind & starting pondering, the answers, the concept kept on unfolding on their own. That's why I edited the question & asked the 2nd querry.... It was just that my mind needed confirmation...
Thank you so much sir. I got too much engrossed and ended up messing it. As I relaxed my mind & starting pondering, the answers, the concept kept on unfolding on their own. That’s why I edited the question & asked the 2nd querry…. It was just that my mind needed confirmation…
I actually thought the answer myself that by raising this doubt I'm defeating the whole purpose of Los C of Fixed Income which states that we can't pull a coupon bearing bonds price with a single spot rate. Therefore it has to be calculated via STO method by calculating the C strips & P strips sRead more
I actually thought the answer myself that by raising this doubt I’m defeating the whole purpose of Los C of Fixed Income which states that we can’t pull a coupon bearing bonds price with a single spot rate. Therefore it has to be calculated via STO method by calculating the C strips & P strips separately with respective spot rates. Thank you
Yes sir. I will do that only... Now I've started accepting this stress... I will now try more to enjoy it & follow this consistently. Instead I've planned to go more aggressively. After I complete FR. I'm talking FR & Audit also.. I anyhow wish to complete every ttn till November. And 2 montRead more
Yes sir. I will do that only… Now I’ve started accepting this stress… I will now try more to enjoy it & follow this consistently. Instead I’ve planned to go more aggressively. After I complete FR. I’m talking FR & Audit also.. I anyhow wish to complete every ttn till November. And 2 month’s before November I just want I do only 1-2 classes per day and involve myself more into self study & revision so that when I enter my 6 months period of self study I don’t get stuck rummaging the momentum.
Interest rate Parity says that interest rate across the globe is same. The difference we see like in india its 13% & in US its 4% is due to the fact that $ is at forward premium. How much premium? Is approximately equal to the difference in the interest rate. (13-4 = 9% (approx). Exactly its[(13Read more
Interest rate Parity says that interest rate across the globe is same. The difference we see like in india its 13% & in US its 4% is due to the fact that $ is at forward premium. How much premium? Is approximately equal to the difference in the interest rate. (13-4 = 9% (approx). Exactly its[(13-4)/1.04 = 8.65%]
Covered interest rate parity formula(with above assumptions) to calculate, spot rate , forward rate, interest of the 2 countries
What’s exactly the value of a derivative
According to this.. value of an option can be negative also...
According to this.. value of an option can be negative also…
See lessIRR & Profitability
I guess here higher IRR is said in comparison of Kc.
I guess here higher IRR is said in comparison of Kc.
See lessIRR & Profitability
C is not the correct answer. The ander is B coz if IRR exceeds coc it's a good thing na. It means the NPV will be positive & it'll increase shareholders' wealth... It's not a problem at all...but my question is that Option C is wrong conceptually...
C is not the correct answer. The ander is B coz if IRR exceeds coc it’s a good thing na. It means the NPV will be positive & it’ll increase shareholders’ wealth… It’s not a problem at all…but my question is that Option C is wrong conceptually…
See lessWhat’s exactly the value of a derivative
Yes, I'm also not satisfied. Kindly convey this message to sir if possible...thank you
Yes, I’m also not satisfied. Kindly convey this message to sir if possible…thank you
See lessWhat’s exactly the value of a derivative
But sir value can be negative for the buyer of the options(C+ & P+) Like in question no. 19 sir said.. the value of the options can never be negaitve.. so is it so that we always calculate value from seller's view point... .
But sir value can be negative for
the buyer of the options(C+ & P+)
Like in question no. 19 sir said.. the value of the options can never be negaitve.. so is it so that we always calculate value from seller’s view point… .
See lessCalculation of N in TVM
Thank you so much sir. I got too much engrossed and ended up messing it. As I relaxed my mind & starting pondering, the answers, the concept kept on unfolding on their own. That's why I edited the question & asked the 2nd querry.... It was just that my mind needed confirmation...
Thank you so much sir. I got too much engrossed and ended up messing it. As I relaxed my mind & starting pondering, the answers, the concept kept on unfolding on their own. That’s why I edited the question & asked the 2nd querry…. It was just that my mind needed confirmation…
See lessWhy can’t we take cube of the spot rate or…N=3 in TVM mode
I actually thought the answer myself that by raising this doubt I'm defeating the whole purpose of Los C of Fixed Income which states that we can't pull a coupon bearing bonds price with a single spot rate. Therefore it has to be calculated via STO method by calculating the C strips & P strips sRead more
I actually thought the answer myself that by raising this doubt I’m defeating the whole purpose of Los C of Fixed Income which states that we can’t pull a coupon bearing bonds price with a single spot rate. Therefore it has to be calculated via STO method by calculating the C strips & P strips separately with respective spot rates. Thank you
See lessInterest Rate dilema
I got it
I got it
See lessHow should I study?
Yes sir. I will do that only... Now I've started accepting this stress... I will now try more to enjoy it & follow this consistently. Instead I've planned to go more aggressively. After I complete FR. I'm talking FR & Audit also.. I anyhow wish to complete every ttn till November. And 2 montRead more
Yes sir. I will do that only… Now I’ve started accepting this stress… I will now try more to enjoy it & follow this consistently. Instead I’ve planned to go more aggressively. After I complete FR. I’m talking FR & Audit also.. I anyhow wish to complete every ttn till November. And 2 month’s before November I just want I do only 1-2 classes per day and involve myself more into self study & revision so that when I enter my 6 months period of self study I don’t get stuck rummaging the momentum.
See lessCovered interest rate parity
Interest rate Parity says that interest rate across the globe is same. The difference we see like in india its 13% & in US its 4% is due to the fact that $ is at forward premium. How much premium? Is approximately equal to the difference in the interest rate. (13-4 = 9% (approx). Exactly its[(13Read more
Interest rate Parity says that interest rate across the globe is same. The difference we see like in india its 13% & in US its 4% is due to the fact that $ is at forward premium. How much premium? Is approximately equal to the difference in the interest rate. (13-4 = 9% (approx). Exactly its[(13-4)/1.04 = 8.65%]
Covered interest rate parity formula(with above assumptions) to calculate, spot rate , forward rate, interest of the 2 countries
F/S = [(1+rA)/ (1+rB)]
Currency is A/B
See less