Q650
Value of stock is Rs 1000 and current value of portfolio is Rs 1500 then obligation to cover call option will be
A.
Rs 6,667.00
B.
Rs 2,500.00
C.
Rs 2,000.00
D.
Rs 500.00
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Obligation to cover call = Current value of portfolio - Value of stock = Rs. 1500 - Rs. 1000 = Re. 500.