Vidyalelo
Commerce · Q666

Financial Management

Graduate and Post Graduate · Commerce · question 666

Q666

Present value of portfolio is Rs 900 and current value of stock in portfolio is Rs 1500 then current option price would be

A.
Rs 2,400.00
B.
-Rs 600.00
C.
-Rs 2,400.00
D.
Rs 600.00
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Current option price = Current value of stock - Present value of portfolio
= Rs. 1500 - Rs. 900 = Rs. 600.