Based on the following information, choose the correct answer from the following questions: Situation Action Exercise Price Premium Spot Price I…

CA Final · Advanced Financial Management · PYQS · November 2024
Based on the following information, choose the correct answer from the following questions: Situation Action Exercise Price Premium Spot Price I Exercised 140 20 160 II Exercised 200 15 175 III Lapsed 300 25 400 From the information given above, choose the correct answer to the Question no. 4 to 6: (3 × 2 = 6 Marks)
(A) Put option, (25)
(B) Call option, 75
(C) Short position, 100
(D) Long position, (100)

Suggested Answer and Working Notes:

Correct Answer: Option (A)

Put option, (25)

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