[Shaharia]

Well, sir told that we have to explain the situation, we don’t need to calculate.

[Shaharia]

Sir,

Please explain me the theory behind the cross rate calculation for ARD & JPY.

Thank you

[Shaharia]

Sir,

Why the unexpired basis is added instead of deducting it in Washi Co’s futures calculation,
as the contract is for six month not seven month

[Shaharia]

Dear Sir,

I would like to know that in this specific question the swap arrangement differential is calculated to assess the benefit of the swap
CMC Co Counterparty Interest rate differential
Fixed rate 2·2% 3·8% 1·6%
Floating rate Yield rate + 0·4% Yield rate + 0·8% 0·4%

Difference = 1.2%

But in March june -17 question no. 3 b(i) why the interest rate benefit is calculated in the following manner (using benefit instead of differential)?

Buryecs Co Counterparty Interest rate benefit
Eurozone 4·0% 5·8% 1·8%
Wirtonia Bank rate + 0·6% Bank rate + 0·4% 0·2%

Gain on swap (60:40) 1·2% 0·8% 2·0%

[Shaharia]

Sir, will you explain how the fraction 92/100 is calculated.
Thankyou.

[Shaharia]

thank you, Sir

[Shaharia]

Thank you, Sir.

[Shaharia]

thank u, Sir.

[Shaharia]

thanks

[Shaharia]

it has been described at bpp text book at pg-257 that a valuation may include unrealised profit if inventory is valued at latest invoice price .

[Author]

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