Vidyalelo
Commerce · Q636

Financial Management

Graduate and Post Graduate · Commerce · question 636

Q636

Current option is Rs 800 and current value of stock in portfolio is Rs 1900 then present value of portfolio would be

A.
-Rs 1,100.00
B.
Rs 2,700.00
C.
Rs 1,100.00
Answer
D.
-Rs 2,700.00

Answer: Option C

Solution

Answer: Option C
Solution:
Current value of portfolio = Value of stock - Call option
= Rs. 1900 - Rs. 800 = Rs. 1100.