Hi, I have few queries regarding suggested answers of SFM Nov 2012 given released by ICAI. I appeared for Nov 2012 exam and failed in SFM paper. Below are the queries which I need to ask
first query
| Ans 1(d)(iii) | ||
| Rate of premium |
=(57.13-55.5)/55.5*100=2.93 |
|
I have calculated it for six month whereas ICAI calculated it annually i.e suggested answer is =2.93*2= 5.87
second query
I solved the 3(a)iii question as below
| Ans 3(a)(iii) | |
|
Expected value of call option=160.5-150=10.5 |
|
Suggested answer is
| Expected price | Value of call | Probability | Call Option |
| 120 | 0 | 0.05 | 0 |
| 140 | 0 | 0.2 | 0 |
| 160 | 10 | 0.5 | 5 |
| 180 | 30 | 0.1 | 3 |
| 190 | 40 | 0.15 | 6 |
| 14 |
Though as per guideline answer by shrigurukirpa site shows alternative answer as per mine i.e 10.5
I want to ask whether solution given by me is right or not. Pleas help
SFM suggested answer link https://220.227.161.86/28955suggans_finalnov12GP1-2.pdf
Shrigurukripa guideline answer link https://www.shrigurukripa.com/lat4stud.php
CAclubindia
