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@@benarjeeks2552 they give such quotes quite a few times just to test your understanding

@@1FINCAFinal Thank u Sir.

Tough to say. Depends on Evaluator and ICAI Exam Key

Not sure depends on evaluator & icai guidelines for that question

4 bro

yes

If you are ok with theory topics then start off exactly in the order of ICAI material If not then ignore chapter 1 and start off in the order of all practical chapters as per ICAI SM- You can do theory chapters towards middle or end - theory chapters are also very important As far as practical chapters are concerned, which also have theory in them, please study both comprehensively

@1FINCAFinal Thank you for your guidance Sir.

@@benarjeeks2552 Welcome :)

thank you so much! Do let your friends know too!

@@anubhav3730 We have been using pen for a very long time , quite a few years actually, at 1FIN. May be you did not get a chance to view our classes

You are welcome!

Thanks for pointing that out! I'll make sure to work on the audio quality for future videos.

Hi, Thanks for the feedback. The live revision had some issues on audio. going forward, will do from studio. So such issues do not re occur.

Noted the feedback.

Welcome!

You may get very few marks in that question. Lets wait for final results and certified copies

@@Singhal9460 depends on evaluator. Assume 1 or 2 marks may be deducted,

No it will not affect marks

It is correct too. I solved using two methods both are used by ICAI in their SM and you will get marks for either method

You are most welcome

Actually ICAI in all its material states variance as 100,56.25 etc They incorrectly ignore % Yuu will get full marks if you write 100.56.25 etc

Pls recheck the question paper - Dividend is declared on year end dates 31/3/23 & 31/3/24 HPR includes dividend - I computed Investment value before payment of dividend, Then there is dividend outflow and the dividend is reinvested at same NAV. So if you compute closing units x closing NAV and subtract the opening value of investment HPR of 115% works out

@@1FINCAFinal okay sir , can we expect grace marks in que 2b ?

@@jj24899 If you attempted yes

Not sure - Depends on evaluator

You are welcome.

Question has specifically given premium - in Real options there is no premium that you pay. Real options are valued, and financial options are priced So, it has to be a financial option Financial option can be put or call, and these options can be long or short Secondly if you let an option lapse, it means the option is out of money An option whose K is < So and is out of money is a put option Put option out of money lapsed means either you bought the put or sold the put. If you bought you lost premium of 25 and if you sold you gained premium of 25 on the option - so out for 4 choices relevant choice is put long on which you lost ₹25 .

Pg no : 9.21. "When an option investor takes a long position, he or she pays a Premium for the contract. The premium is a sunk cost. At expiration, unless the options contract in the money, the contract is worthless and investor loss the entire premium". In the money call option means a strike price which is lower than spot price. In that question, it is in the money call option At expiration, the contract is in the money. Therefore he has not lost anything other than the benefit of rs. 100( spot - exercise) Therefore a party who is in the long position lost rs.100.. Check ICAI modulle page 9.21.. and go and learn what is in the money call option first

@@1FINCAFinal expiration doesn't mean the contract is not in the money. Check page number 9.21 Para " The price of investing"

@1FINCAFinal I initially mentioned wrong page number. Check page number 9.21.

"Lapsed in the money" not "lapsed out of money".

Ideally full marks in my opinion

Question has specifically given premium - in Real options there is no premium that you pay. Real options are valued, and financial options are priced So, it has to be a financial option Financial option can be put or call, and these options can be long or short Secondly if you let an option lapse, it means the option is out of money An option whose K is < So and is out of money is a put option Put option out of money lapsed means either you bought the put or sold the put. If you bought you lost premium of 25 and if you sold you gained premium of 25 on the option - so out for 4 choices relevant choice is put long on which you lost ₹25 .

@@mohitkarara637 not sure if that is the right way.

@@MisfitGamer-vk3of unlikely sorry

When the option is lapsed, u need to need to long the equivalent value of shares. Be it put or call option, when it is lapsed, it looses it's validity. U need to sell the underlying shares. Therefore short position of 100

​@@Hackmann8988 Yes. Afm book pg no 9.38- abandonment exit of options .. please check. The answer should be Long position 100

​@@Hackmann8988 If one has purchased an option, if option lapses and there is no gain, nothing else needs to be done. Initial premia is lost. If one has sold an option and option lapses as buyer has not executed because the buyer is not making any profit, then Nothing needs to be done by the seller. Premium received in income to the seller If one has sold an option and buyer is in profit, then seller has to pay profit to the buyer. So, the net loss for seller is amount paid to buyer minus premia received

@Tvkharish-p5k Pls share the link.

​@@Hackmann8988ya also marked short position of 100

Because ICAI also gave value of e power 0.01668 pls have a look at ICAI illustration 11 page 73 of ICAI SM Derivatives chapter - they solved the problem using both methods resource.cdn.icai.org/74836bos60509-cp9.pdf

@@knowledgebooster7905 you may get some marks and not full Reason is they specifically gave e power values and you were supposed to use them Number of rounded contracts should ideally be the same so some parts of question you will get marks

I think 3 marks will be awarded in total. Out of 8. I also did same mistake.

That was intentional - I did it to show you how ICAI solved it in both ways but i feel using 59 is correct - Yes you could interpolate but answer would not be significantly different as we are rounding off after 4 decimals w.r.t e power rt value. Also - pls have a look at ICAI illustration 11 page 73 of ICAI SM Derivatives chapter - they solved the problem using 58 days resource.cdn.icai.org/74836bos60509-cp9.pdf

​@@1FINCAFinal got it sir. Thanks for clarifying.