ACCG 253 preparation for final exam! (2 Viewers)

[Gupz]

Hi guyz,

i am on my way on preparing ACCG 253, i have already finsihed my preliminary reading for the whole text. And of coz, i ahev already forgotten some of the formula and theories.

Anyone here who is completed this subject, would like to share your experience on how to do prepartion on ACCG 253? i would at least want to get a Cr in this subject.

Cheers

 

[shhy8029]

I'm doing the similar as you. I've completed my exam notes up to week 10, and moving on to options now.

Been trying the tute questions twice, but many questions still remain unsolved. it's even worse for the theory part, things just don't sink into my brain....

I've asked many friends around me who did 253 previously and no one have mentioned the exam was easy. I just want to know how the questions will be set out. ACCG200 and 251 was kinda predictable, but this unit is not...

is the theory part going to be similar to that of the concept questions in the textbooK?

 

[Boxxxhead]

I did ACCG253 last semester, and unfortunately, there's no set format for the exam, eg for my exam there was no MC whereas they have had that in past years.

The final exam is pretty tough for the average ACCG253 student. There will be questions with gratuitous amounts of number crunching (stuff like project evaluation with a LOT of numbers). Don't just do the tutes, but READ THE TEXTBOOK THOROUGHLY because chances are the tutes won't tell you everything you need to know for the exam. For us, there was an options evaluation model question with 3 time periods rather than 2, and there was no tute question like that, so a lot of people had no idea on what to do. That being said, make sure you can do all the tutes too.

Also, if they put up practice questions/papers, DO THEM. Sometimes they'll put bits of the practice questions directly in the final exam, and that means it's easy marks. Not only that, they'll sometimes select questions that you didn't do in the tutes, which helps you fill in some knowledge gaps.

In regards to the theory portion, it's not too bad. You can put a lot of it on your cheat sheet, but they're not complete giveaway marks so you still have to read. Sometimes, they'll be really precise with what they ask (tiny bits of the notes) so make sure you know as much as possible, to get a good 25+/30 on this section.

 

[Monstar]

yeah also getting ready

started writing up cheat sheets and going over questions.. not only just tute but the extra ones. I was in consolutation the other day and was advised not to memorise the specific questions rather learn the reason behind why things occur ie simple example why B=0 will you give a Rf return according to the CAPM.
Also was told to have a whole a4 page for options.. have 1 page for the other stuff, include formulas and theory.

good luck

 

[Monstar]

also keep in mind theres a new lecturer writing the test.. so the focus could shift.

 

[shhy8029]

Is there a negative marking in 253?

 

[pLuvia]

There shouldn't be, well there was none when I did it. Very unlikely there would be

 

[clairegirl]

yeah im doing option valuation now and it is reallly reallly hard :S:s


does anyone have msn messenger that wants to chat or just use each other in terms of getting things

add me
ac_sebastian@hotmail.com

 

[clairegirl]

hey guys for option 1 lecture

slide 22...

how in the world did they get 20.24??

 

[clairegirl]

ok i got it .. so its the present value of the lowest possible share price

 

[clairegirl]

im trying to do a practice question

investor x purchased shares in ABC pTY. Ltd for $21 a share. Currently a share sells for $41. The purchase may shortly increase to $50. However, Investor X would like tp protect the current profit.

The answer is
Investor X should buy a put option with an excercise price of $40. I understand that X needs to buy a right to sell ... but why at 40??

 

[clairegirl]

im guessing the answer is that because the current profit is 20 bucks

you'de need to buy a put which gives you the right to sell at 40 (if the current price reached 50) because you'de need to replicate your profit of 20.

i.e make up the difference ... you'de lose 10 of your current profit if you had to sell@ 50.

So if the price in the future gets to be 50.. and you sold it for 40.. you'de be making 10 bucks


I.e current profit = 41-21 = 20
future price 50 - current price = 9


noooo i totally don't get it? :s someone help ??

 

[CharlieB]

Is there a negative marking in 253?

just for the quiz

ok i got it .. so its the present value of the lowest possible share price

its actually the pv of the amount needed to be borrowed - 21.25/1.05, which is not always the value of he lowest possible share price. texxtbook explains it more clearly

also, capital structure II is soooooooo much harder

 

[Monstar]

im trying to do a practice question

investor x purchased shares in ABC pTY. Ltd for $21 a share. Currently a share sells for $41. The purchase may shortly increase to $50. However, Investor X would like tp protect the current profit.

The answer is
Investor X should buy a put option with an excercise price of $40. I understand that X needs to buy a right to sell ... but why at 40??

Where the hell did you get that question? the tute questions made me think options were easy as.

 

[clairegirl]

quiz 3 lol

 

[clairegirl]

ok what a wonderful person has just told me that the answer to

investor x purchased shares in ABC pTY. Ltd for $21 a share. Currently a share sells for $41. The purchase may shortly increase to $50. However, Investor X would like tp protect the current profit.

The answer is
Investor X should buy a put option with an excercise price of $40. I understand that X needs to buy a right to sell ... but why at 40??

is:
(in my own words., i hope i do the person who told me justice)

by buying a put...he has the right to sell it for 40 bucks... --- so if it goes lower than 41 .... it won't matter because his profit is protected. It's the protective put.... i.e buying underlying stock and purchasing a put (right to sell)

 

[clairegirl]

guys where are you? i need a support network for ACCG253? please post questions problems etc

and i'll try and help... lets keep this thread going!

so far ive studied, fishers, capital structure 1,2 and value options... post up guys!

 

[clairegirl]

Is there a difference between

risk neutral approach and the binomial model??

they look pretty similar

 

[clairegirl]

ok so

if ur using the binomial approach, you need to figure out the risk neutral probabilities in order to figure out value of the option if it increases/decreases

 

[clairegirl]

i definately need to goto pal