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: Option D
Solution (By Examveda Team)
Current option price = Current value of stock - Present value of portfolio= Rs. 1500 - Rs. 900 = Rs. 600.
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