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Management · Q647

Financial Management

Graduate and Post Graduate · Management · question 647

Q647

Present value of portfolio is Rs 500 and current option price is Rs 1200 then value of stock included in portfolio will be

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

Answer: Option A

Solution

Answer: Option A
Solution:
Value of stock included in portfolio = Current option price + Present value of portfolio
= Rs. 1200 + Rs. 500 = Rs. 1700.