Vidyalelo
Management · Q626

Financial Management

Graduate and Post Graduate · Management · question 626

Q626

Current value of stock in portfolio with current option price Rs 20 is Rs 50, then present value of portfolio would be

A.
Rs 30.00
Answer
B.
Rs 70.00
C.
Rs 40.00
D.
Rs 80.00

Answer: Option A

Solution

Answer: Option A
Solution:
Present value of portfolio = Current value of portfolio - Current option price
= Rs. 50 - Rs. 20 = Rs. 30.