You as an investor had purchased a 4-month European Call Option on the equity shares of X Ltd. for 10, of which the current market price is 132 per…
CA Final · Advanced Financial Management · MTP · November 2024
You as an investor had purchased a 4-month European Call Option on the equity shares of X Ltd. for 10, of which the current market price is 132 per share and the exercise price - 150. You expect the price to range between 120to 190. The expected share price of X Ltd. and related probability is given below: Expected Price (₹) 120 140 160 180 190 Probability 0.05 0.20 0.50 0.10 0.15 Based on above case scenario answer the following questions:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
₹ 160.50
Topics: Theoretical Questions
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