Examveda
Examveda

Current value of portfolio is Rs 550 and to cover an obligation of call option is Rs 200 then value of stock would be

A. Rs 350.00

B. Rs 275.00

C. Rs 750.00

D. Rs 1,000.00

Answer: Option C

Solution(By Examveda Team)

Value of Stock = Current value of portfolio + Call option obligation
= Rs. 550 + Rs. 200 = Rs. 750.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process