[sami12185]

Dear p4 examiner what u think who r we¿????? Its seems u think dat we are cfa qualifid and jst giving p4 for the sake of enjoyment

How can u do this to us i you dont want to pass us jst write a technical article telling dont sit for p4 in this session otherwise you are resposible for the Consequences

[sami12185]

Yes please your assitance in this regard will be much appreciated do follow the method shown in your lecture if possible.
Regards

[sami12185]

Hi everyone firstly many congrats to all those who passed

I failed at 47 I attempted q1 except c part due to time pressure than in section B i fully attempted hedging question which was q3 i guess and for q4 I attempted only part a which was of 11 marks I guess I panicked due to time pressure

Now I am confused what should I do my confidence is shattered and I am worried about p4 its my last paper left

[sami12185]

As far as I rember for futures you jst hav to calculate the number of contracts which were 55 i guess and than jst calculate the lock in rate using basis risk

for options premium was already calculated all you need to do is choose the put option convert the dollar into euros using strike price and compare it for under or over hedge

I did it that way for both of strike prices

[sami12185]

Paper was not hard at all u r right bro time ruined me in Q4 i only put the discount rate and time was over arthmatics consumed all my time in Q1 and then in Q2 examiner was very unfair in marks allocation may pass at 50 or fail at 49 god knows

@karanpreetrobin said:
At least for me, Easy exam but very poor time management.
Correct me if I am wrong?
Question 1- A) Business risk and finance risk relations
B) Proposal 2 recommended due to it was bring WACC down.
C) Huge saving on proposal 1 due to less interest payments but still suggested proposal 2 because of future investments and growth etc. Lots of assumptions like CAPM, New beta Calculation Risk free rate, Tax rate, Market value of assets on sale etc.
Question 2- GOD!! I wasted hell a lot of time, Made so hard for myself.
Part-A)Futures-I divided $payment/future rate, and then divided by LOCK in Rate.
Sell/Short futures 55 contracts 5 months one
OTC Options- Nice and easy- Premium were already calculated 🙂
Buy Call options 6month expiry then showed the worst outcome. This time I multiplied the strike price with $payment.
B) Advantages using OTC options over future-GIVE AWAY
Flexibility, No binding, If things goes wrong we can always throw the options
C) Easiest question in the exam-
Mark to Market- Futures trading Open daily and close daily, Open next day again etc etc Calcuate the profit/loss accordingly-first 2 days was a loss and then 3 day was profit (I think)

Question 4) F9 Level Straight forward NPV
Sensitivity analysis Selling price to decrease 9.33% to bring NPV down to zero.
Few other recommendation like IRR, MIRR and VAR

Please correct me if you think anything mentioned above is wrong??

Thanks
Kaz

[sami12185]

Ok got it thanks

[sami12185]

Thanks alot sir

[sami12185]

Sir I have watched this lecture but you didn’t discussed this point so please can you explain it to me because its confusing me

[sami12185]

Ok Sir I got it now completely

[sami12185]

I am speechless Thanks a lot Sir you made my day

sir how you selected that K wants fixed borrowing bocz there is nothing told in the question about what K wants to do??

[sami12185]

Sir I am really struggling in setting up swap hedge in this question can you please help me out because I am unable to understand examiner solution its very different from what you have told in the lecture related to interest rate swap

[sami12185]

Love You sir you are my only hope to pass p4

[sami12185]

Thanks alot for such a brief and to the point explanation just one thing more I want to know is that I am not able to interpret theses basis point given in the question.

All I want to know is that how I can use these basis point to predict the future price although its not required but just for my understanding

And why the march basis point where given in the question whats the logic of it are the of any help????

[sami12185]

And one more thing why in the question he has given current basis on march future 44 points

can you please tell me how we can use this basis point to estimate the current march future price

[sami12185]

Thanks a lot i got it and i totally agree that it would be silly lolz

[sami12185]

ok well i understand that but i just want to know what if we do exercise the option and as mentioned above do we have to pay that difference as we claimed it in the lecture i mentioned above just assume that only for the sake of assumption

[sami12185]

Ok i got it so its spot rate which determines whether to add or subtract Thanks alot

[sami12185]

One thing more I need to now why u used 50% debt & 50% equity instead of using there mrkt value and in capm we can use beta of asset and equity depending on the situation?????

[sami12185]

Thanks alot u rocks #johnMoffat 😀

[sami12185]

Thanks alot i appreciate ur efforts to help students

[sami12185]

Everyone please do the exam survey check your emails and tell them that P3 paper was not fair from all aspects.

[sami12185]

@tokelo said:
The exam was basically designed to fail students how could the exam become so different over9t has the p3 examiner been changed?

totaly agreed

[sami12185]

yes u are right how can we write that much worth 20 marks after using pestel 5 forces and swot in part a totally insane impossinble

[sami12185]

Paper looked easy at first sight but when started to attempt found nothing going in my way screwed up totally don’t now what i wrote in the paper although I attempted all 3 questions but still unsure 🙁

[sami12185]

Plz don’t say that it is the most confusing and difficult topic i came across-ed with so plz help me and upload the lecture before December exam i don’t want to fail my paper please i request you Sir 🙁

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