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Management · Q630

Financial Management

Graduate and Post Graduate · Management · question 630

Q630

Value of stock is Rs 250 and call option obligation is Rs 100 then current value of portfolio would be

A.
Rs 125.00
B.
Rs 150.00
Answer
C.
Rs 350.00
D.
Rs 2.50

Answer: Option B

Solution

Answer: Option B
Solution:
Current value of portfolio = Value of stock - Call option
= Rs. 250 - Rs. 100 = Rs. 150.