alleryStart learning →A call costs Rs 9, a put costs Rs 4 and the stock is Rs 60. What is the present value of the strike?
ARs 65
BRs 51
CRs 55
DRs 60
Answer & Solution
Correct answer: C. Rs 55
C minus P = S minus PV(K), so PV(K) = 60 minus (9 minus 4) = Rs 55.
Keep practising Option (Finance)
Browse all Option (Finance) questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
When is charm especially useful for a delta-hedger?Which Greek is most important for an at-the-money straddle?Speed measures the change in gamma with respect to what?Which Greek is also known as vega convexity?Which Greek is called delta decay?Gamma is classed as which kind of Greek?Which Greek measures sensitivity to the interest rate?Which Greek measures the time decay of an option?