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Sadly enough ..NO…acca is not going to refund any money back..the exam got cancelled because of a silly strike…:( ..we have to prepare again for the next session…bit I think this question was fair enough…that makes me saddder 🙁
Please some one tell me it was a really bad one..in my country the exam got cancelled!!! So that I can comfort myself saying that I could not have even passed with the question… 🙁
the extract of the question
:Troder plc expects to have 400 mil available for s/t investment for 5 months commencing in 2 months time. the co. wishes to protect it from any fall of interest rate and also would like to benefit from any rise in interest. again it is concrned with the high premium. use of collar option is suggested.
LIFFE Sterling options (500,000)strike price call put
95.25 .445 .085
95.5 .280 .170
95.75 .165 .305libor is 5% Co can invest at LIBOR minus 25 basis points
req: company wishes to receive more than 6750000 in interest from the investment after paying the premium. Illustrate how the collar option would be used??..IT SAID IN ORDER TO ACHIEVE A RETURN MORE THAN 4.05% A COLLAR NEEDS TO BE ARRANGED WITH THE CALL STRIKE PRICE HIGHER THAN THE PUT STRIKE PRICE…WHY???.i apologize for the big question 🙁
u need to go through technical articles by the examiner https://www.accaglobal.com/content/dam/acca/global/pdf/sa_nov2011_intrateswaps.pdf
https://www.accaglobal.com/content/dam/acca/global/pdf/sa_sept11_bonds.pdfthe extract of the question
:Troder plc expects to have 400 mil available for s/t investment for 5 months commencing in 2 months time. the co. wishes to protect it from any fall of interest rate and also would like to benefit from any rise in interest. again it is concrned with the high premium. use of collar option is suggested.
LIFFE Sterling options (500,000)strike price call put
95.25 .445 .085
95.5 .280 .170
95.75 .165 .305libor is 5% Co can invest at LIBOR minus 25 basis points
req: company wishes to receive more than 6750000 in interest from the investment after paying the premium. Illustrate how the collar option would be used??
@muzna88 said:
Heyy ,
In question one we were asked to calculate Statement Of comprehensive income and Equity part of Statement of financial position and for this we needed to calculate net assets of subsidiary ,Group reserves and NCI , we were not supposed to calculate goodwill ?
If i m wrong then correct me please
hey u r not wrong buddy cheers 🙂i cudnt get the factoring part of question 2…q1 had so many adjustments!!q3 was easy but my cashflow wasnt balanced. q5 i figured it out after calculating backward! OVER ALL time was the main issue…but i really hope that i’ll pass..i found q4 to b the easiest.