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Sir, I did go through the revision lecture and I am still not able to understand it
Dear sir the basis would be 0 at the end of the futures term is because the spot rate would be equal to the futures price. why would this two rate be equal. I know you mention this in the lecture videos but i am not able to understand Thank u
IF so, is there any link between the fix price to quoted and the traded future price. What about the basis. how does at the end of the contract the spot rate equals to the price of the future theoretically.
If the future gives you the right to convert at a fix date wouldnt it be like option.
Can you please clear this concept for me. This is killing me.IF so, is there any link between the fix price to quoted and the traded future price. What about the basis. how does at the end of the contract the spot rate equals to the price of the future theoretically.
If the future gives you the right to convert at a fix date wouldnt it be like option.
Can you please clear this concept for me. This is killing me.is the price of the future different from the fix price(stated on the contract)
But in the lecture you’ve said that the currency futures are right to convert in a future date at a FIX rate.
I went back to the lecture notes, I think I got it. can you tell me if this is correct or not.
If I bought march futures that would allow me to convert to dollars at a fixed rate 1.52(say)
However, since this are traded just like the share option premium the price of the futures contract trade. these prices (future prices) are the prices to that allow you to buy contract to exchange at end of march at 1.52.
If the spot prices increase to 1.53 then the price of the future would also increase since the exercise price is 1.52 and more people would want to convert at a lower rate.the price of the futures is not the same as the exercise rate. (1.52) but it can play a factor in pricing of the futures contract.
If I would hold to the futures at the end of march I would have the right to convert at 1.52 no matter at which ever price I had bought it in. but since it is mostly used for gambling purposes I would sell it beforehand the expiry of the futures contract
is this correctwhy would someone want to know the market value of the company oppose to the market value of equity. what would be the benefit for each sir
sir for no 2 I am not able to understand can you perhaps give an small example . Thank you in advance.
Supose ‘ A’ is the dealer. He creates the option( his reward is only the premium) then he sells B the option. Is the option traded between B and the rest of the market? and on the exercise date whomever holds the options has the right to buy or sell the shares with the dealer ‘A’. Is this correct?
Yes sir I have gone through the lectures . whos gearning is always relevant while calcualting the ke
The accquirer or the company we are going to acquire or the project.I did go through the lectures but I have a hard time understanding the point if I were to discount the relevant cashflow to all finance holders wouldn that stripoff the intrest and wed have net casshflow to equity holders
are social information audits and social audit two different things sir? IN the AAA sylubus which one do we focus?
the measurement metrics are made by the management yes? its not the auditors Job
sir in other assurance audits (social audit , env audit, performance audit) We are not the ones making the report right we are just checking for the Data reliability (e.g. accurate and complete);
– Quality of content (e.g. relevant, comparable and verifiable); and
– Compliance with reporting requirements (e.g. timely). given to us by the management.?
is this true?The study text defines presentation currency as the one FS is shown in however the lecture video says that functional currency is the currency FS is shown in.
Sir when lets say the parent has a function currency has dihram while the subsidiary has functional currency of Ruppes. If they have a presentation currency of Dollars. Will both of them need to translate to Dollar when making groups ACS. what about when making indvidual FS?
2) In additon what does internal and external mean in the notes? does internal mean the from the operating segement and external everything else from the group excluding the operating segement? for example revenue
3) Sir would be group the are made manditory by by the standard to disclose? or would the we group those that dont meet the threshold so that they meet the threshold?
Thank you sirSir for furthuer knowledge I would also like to ask you how does a company manages to get stock options for its employees? and what would the accounting entry be.
I got It’s the fair value of the option on the grant date. Sir in the video for cash settled you mentioned about the paying based on the price of the shares however in the example you have given the fair value of options. Can cash settled be based on the fair value of the traded option price?
Sir the reason I gave for looking at each point of understanding the entity is it correct?
Sir for example if the there is no risk assessment process in regards to inventory, there ARE Chances of theft, and if the management fails to asses the risk , they might be unware of the theft and the figure might end up on FS. is this what you mean sir for risk assesment?
Sir do you mean that in order to check the FS gives a true and fair view we need to compare it against a criteria.(Financial reporting framework). If the financial statement had not been prepared so then we couldn’t give an opinion because we cannot check it against the criteria, that is why before accepting we need to look at if the financial statements are made in respect to acceptable reporting framework.