Question

The current value of portfolio is $550 and to cover an obligation of call option is $200 then the value of stock would be

a.

350

b.

0.0275

c.

750

d.

2.75 times

Answer: (c).750

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. The current value of portfolio is $550 and to cover an obligation of call option is $200 then the value of stock would be

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. According to the Black Scholes model, the purchaser can borrow fraction of security at risk free interest rate which is

Q. The type of option which cannot be exercised before an expiry date which is classified as

Q. In put call parity relationship, the put option minus call option in addition with stock is equal to

Q. The current option is $800 and the current value of stock in portfolio is $1900 then the present value of portfolio would be

Q. The second step in binomial approach of option pricing is to define range of values

Q. An increase in value of option leads to low present value of exercise cost only if it has

Q. The third step in binomial approach of option pricing is to

Q. A type of contract in which the contract holder has the right to sell an asset at specific period for predetermining price is classified as

Q. According to the Black Scholes model, the short term seller receives today's price which

Q. An investor who writes stock call options in his own portfolio is classified as

Q. According to put call parity relationship, a call option minus put option in addition with present value of exercise is equal to

Q. The current value of stock included in portfolio is subtracted from current option price to calculate

Q. In financial planning, the most high option price will lead to

Q. The current option is $700 and the current value of stock in portfolio is $1400 then the present value of portfolio will be

Q. The present value of portfolio is $500 and the current option price is $1200 then the value of stock included in portfolio will be

Q. The present value of portfolio is $1300 and the current value of stock in portfolio is $2300 then the current option price will be

Q. An investor who buys shares and writes a call option on stock is classified as

Q. The value of stock is $1000 and the current value of portfolio is $1500 then the obligation to cover call option will be

Q. In an option pricing, a rises in risk free rate results in option's value

Q. If the current price increases from lower to higher then an

Recommended Subjects

Are you eager to expand your knowledge beyond Financial Management and Financial Markets? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!