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Passed 60%.ALHAMDULILLAH.ACCA journey ends here for me.Affiliate now.Best of luck others.
Thanks for your advice mate.But I reckon you been to rude the way you reacted to others comments.Just my thought.Anyways thanks for your valuable advice and I do appreciate your advice of practicing past papers almost cover every aspects of p3 syllabus.
Thanks a lot Ken.Really appreciate your effort for giving me such nice feedback.Looking forward to get some more help in future.Cheers.
Congrats mate for being an Affiliate.I bet you deserve it for your hard work and dedication and now enjoy the moment and thanks for your positive feedback as not everyone in the forum was so happy about my queries.But i owe it big times to John for having the patience to answer my queries.His video lectures on hedging is just amazing.I was initially daunted by hedging thingy but his videos made my life so much easier.Its our duty now to promote OT in our respective countries and place evenmore so that other students can be benifitted from here.WISH YOU GOOD LUCK MATE.
Thanks for your reply.
I thought as the company is based in uk the base currency £ so we have to sell £ to buy $.so i choose put option.strike prices were given in £/$.so i multiplied dollar payment requirement with strike prices to find out the expected payment.premium were given in $ so i converted them to £ using spot rate as there were no forward rates were given.but i used put option premium.hope the picture is more clearer to you now.do you reckon i will get some marks awarded out of 8.Thank youJohn I choose put optiIn but i have converted $payment And premium correctly .although i have used put option premium.hope you have understood.do you reckon i would be awarded any marks for this.your feedback on this qould be much appreciated.really feling bad as i have practised hedging a lot and here i am with this mistake.
I think for proposal 2 cost of equity actualy increases and wacc decreases i said due to increase in debt risk of company may be increasing an thus shareholders demanding more in return to compensate extra risk and wacc decreasing due cheap debt in the financing mix.i said in overall both of the proposals were not making much difference to the original cost of equity and capital and said before taking any decisions they must consider the assumptions i mentioned above and said that proposal 1 is slightly better overall than proposal 2.
any feedback For my answer would be much appreciatedDid any one changed market value of equity for any of the propasal for ques 1 it was i think 360m i thought none of the proposals would affect it so i assumed it remain constant.any feedback on this would be appreciated.Thanks.
Did any one find the asset beta for hotel and holiday package department using 70% proportion to work out the equity beta using new capital structure after selling repairment department.
I used the premium for put options though or premiums were same for both put and call option as i cant remember
But again i choose the wrong option so do you still think i am going to get some marks mate.
However i multipled the dollar payable to the strike price and added the premium of put options which is in dollar and converted the dollar premium it to euro using spot rate.supoose if i am wrong on the put option choice am i going to get any mark for the working.so stressed
As we are selling euro to buy dollar dont we need to buy put options Even though there was no contract currency for options.
Is not it suppose to be put option as we need to sell euro to buy $ For hedging question.
Thanks a lot John for your kind help.wish me luck for tommorows exams.Thank you again from the core of my heart for all your help.
And i find the premium cost by dividing the premium by 400 and multiplying by contract size and into number of contracts is it necessary to exPlain why i am dividing by 400.
Thanks
