04 Feb
Tips by CA Harish Wadhwani (Scored 93 marks in SFM)
Congratulations…!! CA Harish Wadhwani for scoring 93 marks in SFM (CA Final)
By: SFMGuru
10 Feb
Securitization CA Final SFM (Strategic Financial Management)
Securitization CA Final SFM Securitisation a chapter in Strategic Financial Management (SFM). This is an important chapter from the CA Exam point of view as well. The concept has been ...ReadMore
By: SFMGuru
02 Apr
Things you should do before your CA Final Exams
Things you should do before your CA Final Exams Clearing CA Final Exam is clearly not a simple cake walk. You need to be extremely committed to attending your CA ...ReadMore
By: SFMGuru
28 Mar
CA Final SFM, quick preparation tips
CA final SFM has a few topics which carry a fine weight-age in each trial which are Foreign Exchange Risk Management, Capital Budgeting, Derivatives, and Portfolio Management. But in its ...ReadMore
By: SFMGuru
14 Jan
Two Way Quotes | Forex | CA Final SFM
A Two way Quote indicates a set of two different rates of exchange known as Bid Rate and Ask Rate. In a Two Way Quotes, the rate at which ...ReadMore
By: SFMGuru
12 Jan
What is an Exchange Rate | Direct Quote & Indirect Quote
Exchange Rate A rate at which one currency can be exchanged with the other. It is a rate at which one currency expressed in terms of the other. It ...ReadMore
By: SFMGuru
10 Jan
Corporate Valuation Basics | CA Final SFM
Need for Corporate Valuation Along with the enterprise growth, number of stakeholders also grows. Presentation of annual financial statements becomes. Curiosity of the stakeholders to understand the ‘true worth’ ...ReadMore
By: SFMGuru
05 Jan
Interest Rate Futures | Derivatives | CA Final SFM
When Forward Interest Rate Agreements are regulated through the “Exchange”, it will become Interest Rate Futures. However, the mechanism of IRF is different from FRA. The system is designed ...ReadMore
By: SFMGuru
03 Jan
Nostro, Vostro & Loro Accounts | CA Final SFM
Nostro: Nostro (translated from Italian) means “our”. It’s a way of saying, “Our money that is on deposit at your bank”. Nostro is an accounting term used to describe an ...ReadMore
By: SFMGuru
03 Jan
Transaction And Operating Exposures | CA Final SFM
A firm dealing with foreign exchange may be exposed to foreign currency exposures. The exposure is the result of possession of assets and liabilities and transactions denominated in foreign ...ReadMore
By: SFMGuru
19 Dec
Arbitrage Pricing Theory Model (APTM) | CA Final SFM
This model believes that the risk factor is not singular i.e., to say there are multiple risk factors which must be factored for determining expected rate of return. These risk ...ReadMore
By: SFMGuru
17 Dec
William Sharpe’s Single Index Model | CA Final SFM
Determining Portfolio Risk Using William Sharpe’s Approach According to William Sharpe, portfolio risk is the aggregate of systematic and unsystematic risk. For determining portfolio risk using Sharpe’s approach, first determine ...ReadMore
By: SFMGuru
12 Dec
Hedging Foreign Exchange Risk Through Currency Options | CA Final SFM
If the company that is planning to hedge the foreign exchange risk, is an importer and has to settle the payment in foreign currency, it will have the need ...ReadMore
By: SFMGuru
12 Dec
Immunization of Bonds | CA Final SFM
Investment in bonds cannot be considered completely risk free. Such investment can have the following two types of risk: Interest Rate Risk Reinvestment Risk
By: SFMGuru
09 Dec
Purchase Order Financing (Steps) | CA Final SFM
Receive a purchase order form your customer. Obtain a proposal from the supplier regarding the estimates. Apply for PO financing and obtain approval from POF Co. The Supplier is paid ...ReadMore
By: SFMGuru
07 Dec
Security Market Line | Lambda | Capital Market Line | CA Final SFM
Risk, Return and Portfolio Theory Security Market Line (SML) When the expected rate of return as per CAPM is presented graphically it will be a straight line sloping upward. Such ...ReadMore
By: SFMGuru
07 Dec
Investment Banking | What Bankers Do | CA Final SFM
Investment banking is a specific division of banking related to the creation of capital for other companies, governments and other entities. Investment banks underwrite new debt and equity securities for all types ...ReadMore
By: SFMGuru
07 Dec
Credit Creation by Banks | CA Final SFM
A central bank is the primary source of money supply in an economy through circulation of currency. It ensures the availability of currency for meeting the transaction needs of an ...ReadMore
By: SFMGuru
29 Nov
Replacement of Bonds | CA Final SFM
1. Identify all Cash Flows arising on: Date of Replacement During the life of Bond Date of maturity
By: SFMGuru
29 Nov
Put Call Parity Theory | CA Final SFM
How would you apply Put-Call Parity Theory in the above example and determine the value of put option?
By: SFMGuru
29 Nov
Systematic & Unsystematic Risk | CA Final SFM
All investments are subject to risk. It is generally believed that investors are rewarded for taking risk. However, some risk is not rewarded. Investors need to control or eliminate risks for which they ...ReadMore
By: SFMGuru
29 Nov
Startup Finance | CA Final SFM
Every startup needs access to capital, whether for funding product development, for initial rollout efforts, acquiring inventory, or paying that first employee. Most entrepreneurs think first of bank loans as ...ReadMore
By: SFMGuru
29 Nov
Risk Return & Portfolio Theory | Equity Analysis | CA Final SFM
Determining Rate of Return of a Single Security
By: SFMGuru
28 Nov
Security Analysis | CA Final SFM
Security analysis is the analysis of tradeable financial instruments called securities. It deals with finding the proper value of individual securities. Security Analysis involves a systematic analysis of the “Risk-Return” ...ReadMore
By: SFMGuru
28 Nov
Depository Receipts for SFMG (ADR, GDR, IDR) | CA Final SFM
Raising Funds by an Indian Company through ADR Deposit of the securities of an Indian company with a custodian bank (agent of the depositary) in India. The custodian bank makes ...ReadMore
By: SFMGuru
28 Nov
Currency Swaps | CA Final SFM
1. Meaning Currency Swaps refer to the arrangement where principal and interest payments in one currency is exchanged for such paymentsin another currency. 2. Features The principal amount for both ...ReadMore
By: SFMGuru
28 Nov
Clean Price & Dirty Price – Bond Pricing | CA Final SFM
In finance, the dirty price is the price of a bond including any interest that has accrued since issue of the most recent coupon payment. This is to be compared ...ReadMore
By: SFMGuru
28 Nov
CAPM – Capital Asset Pricing Model | CA Final SFM
Meaning of β β is a factor that measure risk associated with any security. It indicates the risk involved in its returns as compared to the risk prevailing in the ...ReadMore
By: SFMGuru
28 Nov
Islamic Finance | CA Final SFM
Islamic finance refers to the means by which corporations in the Muslim world, including banks and other lending institutions, raise capital in accordance with Sharia, or Islamic law. It also ...ReadMore
By: SFMGuru
28 Nov
Risk Management and VAR | CA Final SFM
Types of Risk Faced by a Business Entity Strategic Risk Compliance Risk Operational Risk Financial Risk Strategic Risk Strategic Risk is the exposure to loss resulting from a strategy that ...ReadMore
By: SFMGuru
28 Nov
Option Valuation by Various Methods | CA Final SFM
Options Valuation Option valuation refers to the amount of premium to be determined. In other words, what should be the fair amount of an option premium? Determining such fair value ...ReadMore
By: SFMGuru
28 Nov
Forex Netting | Money Market Hedge | CA Final SFM
Purchased Assets on 01.07.2011 for $ 1,00,000 Amount to be settled on 30.09.2011 ↓ There is a “$” Liability Coincidentally, the company has a receivable of $1,00,000 ...ReadMore
By: SFMGuru
28 Nov
Interest Rate Options (Caps, Floors and Collars) | CA Final SFM
These are such derivative contracts where the holder of Interest Rate Options has a right but no obligation for borrowing or investing money at a pre decided interest rate. For ...ReadMore
By: SFMGuru
28 Nov
Indian Financial System | CA Final SFM
A Financial System is a composition of various institutions, markets, regulations, laws, practices, money managers, analysts and transactions. The financial system performs the essential economic function of channeling funds from ...ReadMore
By: SFMGuru
28 Nov
Immunization of Bonds | CA Final SFM
Investment in bonds cannot be considered completely risk free. Such investment can have the following two types of risk: Interest Rate Risk Reinvestment Risk 1. Interest Rate Risk Such ...ReadMore
By: SFMGuru
28 Nov
Hedging With Stock Futures | CA Final SFM
What are Stock Futures? Stock Futures are financial contracts where the underlying asset is an individual stock. Stock Future contract is an agreement to buy or sell a specified quantity ...ReadMore
By: SFMGuru
28 Nov
Hedging Through Index Futures | CA Final SFM
What are Index Futures? Index futures are futures contracts on a stock market index. These are future contracts where the underlying is a specific index of a specific stock market. As one ...ReadMore
By: SFMGuru
28 Nov
Hedging Through Currency Options | CA Final SFM
Hedging Foreign Exchange Risk Through Currency Options If the company that is planning to hedge the foreign exchange risk, is an importer and has to settle the payment in ...ReadMore
By: SFMGuru
28 Nov
Forward Rate Agreement (FRA) | CA Final SFM
These are simplest forms of Interest Rate Derivatives. Under FRA, an interest rate, that is to be effected in future in agreed upon at earlier date. For example, X Ltd. ...ReadMore
By: SFMGuru
28 Nov
Hedging Through Currency Futures | CA Final SFM
If the company that is planning a hedge the foreign exchange risk, is an importer and has to settle the payment in foreign currency, it will have the need to ...ReadMore
By: SFMGuru
27 Nov
Convexity of Bonds | CA Final SFM
Convexity It is known that when interest rate expected by the investor (Desired Yield Rate) changes, the value of the bond will also change. The desired yield rate and bond ...ReadMore
By: SFMGuru
27 Nov
Bond Sensitivity, Bond Duration and Bond Volatility | CA Final SFM
Sensitivity of a Bond With Respect to Changes in Desired Yield Rate Interest rate sensitivity is a measure of how much the price of a fixed-income asset will fluctuate as ...ReadMore
By: SFMGuru
27 Nov
Bond Strips – Interest Strip – Principal Strip | CA Final SFM
Bond STRIPS STRIPS is an acronym for Separate Trading of Registered Interest and Principal of Securities. The present value of cash flows from a bond can be divided into ...ReadMore
By: SFMGuru
26 Nov
Bond Valuation Yield to Maturity (YTM) | CA Final SFM
Yield to Maturity This is a rate of return which is generated by a bond over a period up to its maturity. If the future cash flows of interest and ...ReadMore
By: SFMGuru
15 Nov
Bond Valuation SFM CA Final
Bond Valuation SFM CA Final When a company has to raise long term debt, one of the modes of raising the funds is by issuing debentures. For all practical reasons, ...ReadMore
By: SFMGuru
22 Jun
Options Valuation | CA Final SFM
Option valuation refers to the amount of premium to be determined. In other words, what should be the fair amount of an option premium? Determining such fair value or fair ...ReadMore
By: SFMGuru
21 Jun
Intrinsic Value & Time Value of Options
Value of an Option Generally the option premium is considered as the value of an option because it is the price at which an option can be bought or ...ReadMore
By: SFMGuru
20 Jun
Options (Basics) | CA Final SFM
Options are such derivative financial instruments that do not bind the option holder into a firm commitment. Options in fact provide the right to the option holder to exercise or ...ReadMore
By: SFMGuru
19 Jun
Speculation through Forwards & Futures | CA Final SFM
Bullish Sentiment Expectation that price will Rise in upcoming time. Bearish Sentiment Expectation that price will Fall in upcoming time. Consider the following example: Mr. A expects that the price of shares ...ReadMore
By: SFMGuru
13 Mar
International Finance – LMR | CA Final SFM
Clarification of basic terms Do you know? (Refer Q.1 to Q.6 from Textbook) What is an Exchange Rate? What do you mean by Direct Quote? What do you mean by ...ReadMore
By: SFMGuru
Tips by CA Harish Wadhwani (Scored 93 marks in SFM)
February 02, 2021
Securitization CA Final SFM (Strategic Financial Management)
February 02, 2020
Things you should do before your CA Final Exams
April 04, 2019
