Conclusion -

1. Almost all the question had silly mistakes, calculation

mistakes.
2. At 2 -3 places you were lacking in conceptual clarity

Solution -
1. Stop just solving the PM and questions . Pick up Test
Papers and give atleast 10 test papers, then analyze the
answers and mistakes.
You could have
Text saved 17 Marks in
total

Analysis by - CA Mayank Kothari

 Cash Discount Ignored here as a cost of in house management

127.77. - - > These are the receivables of In house management.

Not when the factoring is taken.
In all the answer you ignored the hedging premium of 76800 ,so practically all the
answers are wrong and only 1 mark is deducted for that . Fair Enough You could have
saved 1 Mark here
 1. You used only 2 months swap points, divided it by 60 and then multiplied it by 15 to calculate
the 15 days points.why only 2 months swap points and not 3 months swap points / 90 days and
multiply by 15 days and deduction from 3 months? This should have been the question in mind in
exam hall.

2. Next You should have restricted all calculations upto 4 digit only, as the same was written in
question paper to assume swap point of 0.0001. But in second part you made calculation unto 5 decimals
Tip - Always right Q1(b) and not just b
 The Silly Mistake- No. of days
in first part should have been
30+31+31+29+31=152 or (151
if we exclude 1st Nov) , and
you took only 121?
The question has clearly
You could have mentioned to find out the answer
saved 1 Mark here upto 3 decimals. Still you have
limited your answers to 2
decicimals or 4 decimals

You got 3 marks out of 5 in this question. Fair enough

 In numerator it should have
been Bond’s market price not
face value You could have
saved 2 Mark here

Rest of the answer is clean .

 1. Worst Presentation for Futures Contract
2. Futures Hedging being the important part of the
question, is wrong and hence deducted 5 marks for that.
Fair Enough.
3. Got 3 marks in this question
 Showing
unnecessary
calculation
can have the
You could have negative
saved 1 Mark here impact.
Wrong rate used
 Two mistakes
1. You extended the contract on DUE Date , i.e.
10th , the question is Late Extension i.e. on
20th. So quotes used is wrong
2. Interpretation mistake. Customers is
importer , means he wants to buy and hence
selling rate (ASK) for the asset . You took BID
rate.( this is the mistake done by around 80%
of the students in FOREX)
Lack of conceptual clarity
Fair Marking is done in this question
 You could have
saved 4 Mark here

the formula used is regression

and data you used is of
correlation analysis
Due to the wrong calculation of
beta, all the other answer went
wrong. ! hence No Marks except
for2
 You could have
saved 3 Marks
Lack of Conceptual Clarity - We never use
return of security in this formula to
calculate the risk of the portfolio
 Due to the wrong
calculation all the
other answer went
wrong. ! hence No
Marks
 You could have
This should have been 201955 saved 5 Marks
instead of 210955. One silly here
mistake and final answer
went wrong and you lost 5
marks
Don’t skip theory part of SFM