CA Final AFM study plan

Build a one-page map of every derivative instrument (forwards, futures, options, swaps) linking payoff formula, margin/settlement mechanics and the exposure it hedges

Compute forward and futures pricing, including cost-of-carry with dividends, storage and convenience yield, and reconcile the two prices

Work 25 numerical problems on hedging with futures: minimum-variance hedge ratio, basis risk and roll-over, and record every error in an error log

Derive and apply put-call parity and simple no-arbitrage bounds on option prices without looking at solutions

Apply binomial and Black-Scholes-Merton option pricing to 15 numerical cases, stating assumptions and identifying when each model breaks down

Compute and interpret every Greek (delta, gamma, theta, vega, rho) and use delta-gamma hedging on a small portfolio

Value interest rate swaps and currency swaps from a given yield curve, and explain credit risk in a swap book

Explain Value at Risk methods (historical simulation, variance-covariance, Monte Carlo) and compute VaR for a two-asset portfolio

Draft a hedging-policy memo for a hypothetical exporter covering instruments, limits and disclosure

Solve 20 mixed derivative valuation problems under timed conditions (90 seconds per mark) and classify each by sub-topic

Work through at least 8 past-exam-style case scenarios on options strategies (straddle, strangle, butterfly, collar) and state the profit profile and break-even points

Reconcile derivative accounting and disclosure requirements with hedging economics, noting where hedge accounting changes reported profit

Re-derive the Black-Scholes formula from memory and check sensitivity of price to each input

Classify transaction, translation and economic exposure for 10 company scenarios and match each to the correct hedging tool

Compute forward rates from interest rate parity and forecast exchange rates using purchasing power parity, testing where each theory fails

Price and evaluate money market hedging, currency futures, currency options and currency swaps for the same exposure and compare outcomes

Build a worked example of a multinational's consolidated accounts under translation exposure and describe the impact on ratios

Explain international capital budgeting: adjusted present value, foreign currency NPV and repatriation restrictions

Evaluate capital budgeting under risk using certainty-equivalent, risk-adjusted discount rate and decision-tree approaches on 10 problems

Apply adjusted present value and adjusted discount rate to a leveraged project and explain the difference in results

Analyse replacement, lease-versus-buy and capital rationing decisions with unequal lives and inflation

Write the linkage between corporate strategy, capital structure, dividend policy and the investment decision, using one real Indian company as an example

Explain the role of the CFO in financial policy and how agency costs and signalling affect payout choices

Compute and interpret risk and return measures: covariance, beta, Sharpe, Treynor, Jensen's alpha and information ratio, on a 6-stock dataset

Apply CAPM, single-index and multi-factor models to 10 numerical problems and critique the assumptions

Explain securitisation structure, SPV mechanics, credit enhancement, pass-through versus pay-through and the Indian regulatory backdrop

Compare mutual fund schemes using expense ratio, tracking error, AUM and performance metrics, and explain the regulatory framework for fund operations

Explain bond duration, convexity and immunisation with worked numbers

Compute merger synergies, swap ratios based on market price and EPS, and post-merger EPS for 10 numerical cases

Value a target using DCF, comparable companies and comparable transactions, and reconcile the three values

Explain takeover defences, due diligence, regulatory approval and competition law steps in an Indian acquisition

Analyse demerger, spin-off, slump sale and buyback as restructuring routes and state their tax and accounting consequences

Evaluate an acquisition financing structure (cash, stock, debt) and its effect on leverage and control

Take two full-length timed mock exams under exam conditions and score each against the marking scheme

Revisit the error logs from weeks 1-7 and re-solve every wrong answer until each is correct without notes

Drill presentation discipline: workings layout, assumption statements, time allocation per mark and handling ambiguous questions

Summarise each domain into a one-page revision sheet with formulas and common traps

Identify the three weakest sub-topics from mock data and close them with targeted practice