Vidyalelo
Management · Q632

Financial Management

Graduate and Post Graduate · Management · question 632

Q632

Current value of portfolio is Rs 550 and to cover an obligation of call option is Rs 200 then value of stock would be

A.
Rs 350.00
B.
Rs 275.00
C.
Rs 750.00
Answer
D.
Rs 1,000.00

Answer: Option C

Solution

Answer: Option C
Solution:
Value of Stock = Current value of portfolio + Call option obligation
= Rs. 550 + Rs. 200 = Rs. 750.