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A call has strike Rs 100 and premium Rs 5. The stock ends at Rs 112. Net profit per share?

ARs 5
BRs 12
CRs 17
DRs 7
Answer & Solution
Correct answer: D. Rs 7
Exercise gains 112 minus 100 = 12, and subtracting the Rs 5 premium leaves a profit of Rs 7.
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