Vidyalelo
Commerce · Q648

Financial Management

Graduate and Post Graduate · Commerce · question 648

Q648

Present value of portfolio is Rs 1300 and current value of stock in portfolio is Rs 2300 then current option price will be

A.
Rs 3,600.00
B.
Rs 1,000.00
Answer
C.
Rs 1,250.00
D.
Rs 1,500.00

Answer: Option B

Solution

Answer: Option B
Solution:
Current option price = Current value of stock - Present value of portfolio
= Rs. 2300 - Rs. 1300 = Rs. 1000.