[michael]

Thank God for that, was ready to try P7 instead.

Thank you very much John.

[michael]

Hi John,

Is the following correct:

Buy Call Option: I don’t own any shares, I buy an option for say 15c with an exercise price of $1.80 in 3months (eg Ch 13 example 1). If the share price in 3 months is greater than $1.80 then I exercise the option and buy the share for $1.80 and can immediately sell it for a profit. If the share price is less than $1.80 I do not exercise the option (it expires/I throw it away).

Buy Put Option: I own a share currently worth $2.90 (eg example 3) which I am going to sell in 6 months. I buy a put option for 14c which guarantees me a price of $2.60. In 6 months time if the share value is less than $2.60, I exercise the option and sell my share at $2.60. If the share price is higher than $2.60, I sell for the price on that day and do not exercise my option.

Sell Call Option: I own shares, I am worried the value might fall, so I sell call options today, buy them back in the future. If share price falls, I will net off my profit from call options. If share price rises, I will make a loss in the options and will net off to same result overall.

Can you sell a Put Option? If so, what would be the scenario to do this?

Sorry for such a long question. Your help is very much appreciated.

Thanks,
Michael

[michael]

So if you buy a call option, you pay a premium/deposit and choose whether you wish to convert in future or not.

Is it the same for selling a call option? Pay a premium then have a choice in future?

I have watched the lectures and felt I understood this last week, but I seem completely confused going over it again now.

Thanks,
Michael

[michael]

Ok, thanks very much.

Yes the new lectures were very helpful and just in time for tomorrow’s exam.

Thanks again.

[michael]

Would the 2nd entry be:

DR Expense (SPL) 0.25m
CR Bank 0.2m
CR Financial Asset 0.05m

[michael]

Thanks very much for all the replies. Seems quite unanimous and couldn’t really disagree with any of the points, especially the 4 exams in one sitting.

[michael]

Hi Chris

I have the same problem with this question. I have looked under the video and tried searching the forum but to no avail.
Could you please post a link to the other thread as I am totally lost with this.
If the answers at the back are correct and you should use 7.67%, I still do not understand why the $1m goes to equity and is not split proportionately?

Thanks in advance.

Nurul – did you find the other thread?

[michael]

Anyone?

[michael]

Thanks for the replies.

Yes I am extremely grateful to opentuition as it has got me where I am today. And I quite like chris and his teaching methods.

However this is the first time that when going to past exam questions after notes/lectures that I have really struggled.

[michael]

I have used opentuition for F6-F9, P1&P3. I have found the lectures and notes, together with a BPP practice kit enough to pass all those exams 1st time.
I couldn’t recommend OT any higher.
However,I am currently studying towards P2 and for the first time I feel that opentuition is not enough. There seems to be a lot in past exam questions that there is no mention of in the OT notes.

[michael]

Thanks for the quick response.

Do you see any need to do the UK version?

I don’t see my future being in audit but also don’t want to close any doors. With changes due in 2017 will it even matter if I have passed UK or not?

Thanks again
Michael.

[michael]

Hi

I have just noticed the “INT”, does that mean it is no use for the UK exam?

Michael

[michael]

I’m needing P2 stuff if it’s still going? Based in Glasgow.

[michael]

47% pass rate. Well done to everyone that passed.

[michael]

I think it will be the highest P3 pass rate since 2007.

[michael]

54. Lowest mark so far but happiest I’ve been at passing. 3 to go.

[michael]

First paper I have struggled with time. Question 1 was very reasonable but I spent far too much time on it. Especially PESTEL which was only for 7 marks.
Hopeful of scraping a pass due to question 1.

[michael]

Ok, thank you. I know the models, just I can never remember the correct names. Guess that’s something I can work on from now until Thursday.

[michael]

Hi Ken

Just to follow up on this, say for example the question asks about stakeholders, and you mention key players, keep satisfied, power and interest etc etc and relate it to the question. However you don’t mention the words mendelows matrix, will you drop marks for this?

Thanks
Michael

[michael]

Anyone have a blue peter badge for Lynne?

[michael]

73% first time with a pass in p1 also. You have to love open tuition.

[michael]

Hello,

I have passed F6-F9 with an average over 68%, therefore I only require a pass to have a 1st class degree.

How would you relay this on a cv?

Thanks for any advice.
Michael.

[michael]

I thought it was a very reasonable paper. Mcqs were quite tricky.

[michael]

Ok. Thanks for the quick reply.

[michael]

@trephena I’m just looking for a bit of confirmation here……

F1-F5 exempt
F6 81
F7 81
F8 March
F9 60

Am I correct in thinking that any pass in F8 and RAP gives me a 1st class degree?

Thanks

[Author]

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