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Also, why when calculating the premium for the exercise price of 1.60 they used the 3month expiry for the exercise price of 1.62? Really confusing to me
Sir – with regards to this same question. In part (a) when calculating the currency option why did they use put options instead of call? I know they said to protect against a depreciating pound. But what does this mean? How do i know when to use a put option instead of a call option?
Kind regards,
GaryWell when you simplify it like that it begins to make sense..lol
Thank you!!
Regards,
GaryCan you kindly show me how the calculations are done to arrive at the beta for hotel services?
Thanks very much.
Sir, with respect to this same question , how was the nominal cash flows figures arrived at in part (a) in the Return phase.
Real cash flows 52 490 2242 928 928
Nominal cash flows 54.63 527.68 2474.75 1049.95 1076.20 ??Thanks sir however i’m still a bit puzzled but not as much as before. Please see below;
“Dollar payments by MJY and subsidiaries to the other 4 companies are 170 + 120 = 290”
Why was the dollar payment of $50 made by Subsidiary 2 excluded in this computation?
@favx14
I wrote that there is a ROMM if the going concern status is incorrect and the matter should be disclosed by the auditor in an EOM. I then defined EOM and its benefits to users of the F/S’s
Valuable points noted Sir. I am studying for my final option papers (P4 and P7) on my own (self-study) and therefore i am very grateful for this assistance.
Thank you!Thanks soo much Sir – i understand it now! 🙂
PS: Apologies for asking the same question twice
@missmorkor22.. CAPM: ke=rf+B(rm-rf).. the equity risk premium will be (rm-rf) and not rm(market risk premium) itself.. @aneelraja, i calculated the cost of convertible debt by first finding the after-tax interest rate and then the conversion value using Po(1+g)n by R , i then calculated the cost of debt (kd) by finding a negative and positive PV and then putting these figures into the IRR formula..