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S = Rs 50, K = Rs 50, T = 1, r = 5%, σ = 0; theoretical call value (deterministic) equals:
ARs 2.50
BRs 5.00
CRs 2.44
DRs 0.00
Answer & Solution
Correct answer: C. Rs 2.44
1. Identify what the question asks: this concept maps to bsedge (§7.3).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (C).
_Source: ICAI BoS CA Final Paper 2, Ch 9 "Derivatives Analysis and Valuation"_
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