hello all,
If u have any problem in any of the question or topic in sfm and costing. You can ask me and i will try to solve ur problem as soon as possible for me.
20 Replies
CA Vikas Jain
(Practicing )
(68 Points)
Replied 21 September 2011
| Originally posted by : ashima | ||
 |
hi can u plz tell me what is portfolio arbitrage,and in derivative what is the concept of short position and long position? |
 |
short position means you have sold asset(stock, instument etc.) without owning them. Like u go into capital market and sold 100 share of tata motors without having these shares. As u sold these share, u must buy these share again to square off ur position.
Long position simply means buying of instument.
lalit
(taxation deptt)
(22 Points)
Replied 22 September 2011
hi ashima, can u tell me concept of equity beta and debt beta
SHOBHIT
(STUDENT)
(31 Points)
Replied 29 September 2011
sir i want to know about the use of scientific maths at ca-final level.
i m a non mahs student.
is usage of " higher mathmatics " required at final level
Suresh G
(Final Student)
(272 Points)
Replied 30 September 2011
HI Shobit,
In my Opinion 10th Class/SSC level of Mathematics is more than sufficient for CA Final Course to Complete.
CA course is for Commerce students no high level math required. Hope you find interesting and dont fear.
Thanks,
Suresh.
CA Vikas Jain
(Practicing )
(68 Points)
Replied 01 October 2011
| Originally posted by : Suresh G | ||
|
|
HI Shobit, In my Opinion 10th Class/SSC level of Mathematics is more than sufficient for CA Final Course to Complete. CA course is for Commerce students no high level math required. Hope you find interesting and dont fear. Thanks, Suresh. |
|
Shobit,
You dont need to worry about use of mathematics. Ofcourse knowledge of mathematics is necessary for any financial subject. So you may face some difficulties in SFM and costing but other than that you will not face any problem.
SHOBHIT
(STUDENT)
(31 Points)
Replied 01 October 2011
thanks vikas sir and suresh g for building my confidence. But i want to know about strategic financial management. i got to know that his subject requires high level maths which we studied in cpt like calculas, AP GP. Sir i can do the basic maths which i have studied in my 10th class. you have mentioned that every comm. subject requires math.. sir i am not facing much problem in ipcc cost bcos my 10th level maths is good. " kya issse jyada tough maths sfm me use hogi" ...
i m afraid of scientific maths.... please reply..
otherwise i m ok in all other subject...
Please reply with respect to strategic financial mnagement.
Suresh G
(Final Student)
(272 Points)
Replied 01 October 2011
Hi Shobit,
For Costing utmost you use the Basic level of Arthmetics which any Competitive Exams test like Percentages, Ratios etc.
As Far as SFM is Concerned, ofcourse there might be use of Derivatives etc in few Formulaes like Black Scholes Model etc apart from Discount, Percentages, Distribution Curves, Log and Antilog etc. However good thing is You need not know much about Math in solving these as they are all formula Based and with Practice you will be Mastered in these topics.
I assure you CA Syllabus doesnt give any unfair advantage to Math students.
Even for SFM your basic 10th/SSC level knowledge is more than sufficient.
Wish you all the best your future stuides.
Suresh.
SHOBHIT
(STUDENT)
(31 Points)
Replied 02 October 2011
thanks a lot suresh g for giving such a nice advice..
Swaminathan Sundaram
(Student CA Final )
(26 Points)
Replied 21 August 2013
I like to know what is asset beta
Siddharth Jain
(None)
(114 Points)
Replied 21 August 2013
Hi thanks for this thread, I was looking exactly for something like this. I hope we can start such a thread for all the subjects.
My query pertains to Q1 in SFM M13 RTP.
Link- https://220.227.161.86/29206rtpfinalmay2013_2.pdf
I am not satisfied with the answer. Why would the trader buy a forward contract at the end of 6 months? If he buys a forward contract at end of 6 months. He will not cancel his exposure because:
1. He has entered into sell at T0 in T6.
2. He will entered into buy agreement at T6 for T12.
How is it being cancelled???
Also, his effective selling price has dropped from 18.5 to 18.45. Is the solution logical?
reply would be appreciated.
Siddharth Jain
(None)
(114 Points)
Replied 21 August 2013
Doubt 2
In Nov 12 RTP. Link - https://220.227.161.86/27496rtpfinalnov2012_2.pdf
Q6. Forward Rate Agreement.
Question says the person enters into a 6 by 9 FRA at 5.25%
On fixing date reference rate MIBOR is:
3M -> 5.5%
6M -> 5.7%
9M -> 5.85%
Doubt, what does the 3 Month MIBOR represents? The rate 3 months from t0 or the rate 3 months from the settlement date.
The wordings used in the question is: fixing date- which would be t0. So logically, the settlement date is T6 and reference rate is 5.85% (i.e. T=9).
So my basis point profit = 5.85- 5.25 = 0.6%
But answer is contending differently. Please help.
Rahul
(Chartered Accountnat CS)
(1580 Points)
Replied 23 August 2013
Hi siddarth
Regarding Doubt no 1
The solution is logical
The trader will enter into a futures contract @ 18.50 maturing last thursday of the 6th month
Now suppose we are in the sixth month
Now the price is reduced to 17.5 in spot
But futures maturing last the thursday of this month are selling @ 17.55
So we will enter into a reverse futures contract @ 17.55
and we will get 18.45 as net selling price.
What you are thinking is that the net selling price should be 18.5.........rite????
But dear, futures mature on last thursday of the month
it is not necessary that the trader sells goods in spot at last thursday
so he should enter into a reverse future contract
hope you got it
regards
rahul
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