A stock is currently selling at ₹270. The call option to buy the stock at ₹265 costs ₹12. What is the Time Value of the option?
₹5
₹17
₹7
None of (A), (B) or (C)
A Ltd., an export customer requested his banker B to purchase a bill for USD 80,000. Calculate the rate to be quoted to A Ltd. if B wants a margin of 0.08%, given that the inter bank rate is ₹ $ 71.50/10.
₹71.1569
₹71.0431
₹71.5572
₹71.4428
A company is considering four projects A, B, C and D with the following information:
Project A
Project B
Project C
Project D
Expected NPV (Rs)
60,000
80,000
70,000
90,000
Standard deviation (Rs)
4,000
10,000
12,000
14,000
Which project will fit the requirement of low risk appetite?
Which project will fit the requirement of low risk appetite?
Project A
Project B
Project C
Project D
The spot Value of Nifty is 4430. An investor bought a one month Nifty 4410 call option for a premium of ₹12. The option is:
In the money
At the money
Out of the money
Insufficient data
A certain mutual fund has a return of 17% with standard deviation of 3.5% and the sharpe ratio is 4. The risk free rate is
12.5%
4%
3%
7.5%
The following information of a project are given below:
Expected cash flow (₹)
Probability
6,000
0.20
16,000
0.80
Risk less
If certainty equivalent coefficient is 0.7, what will be certain (Risk less) cash flows of the project?
₹12,000
₹9,800
₹9,000
₹15,400
The spot and 6 months forward rates of US dollar in relation to the rupee (₹/$) are ₹ 74.532/75.4143 and ₹75.1278/76.2538 respectively. What will be the annualized forward margin (with respect to Ask price)?
2.42%
1.60%
2.23%
2.31%
B can earn a return of 18% by investing in equity shares on his own. Now he is considering a recently announced equity based Mutual Fund Scheme in which initial expenses are 1% and annual recurring expenses are 2%. How much should be Mutual Fund earn to provide B, a return of 18%?
18.18%
20.18%
22.18%
21%
You are given the following information of a stock:
Strike Price
₹400
Current stock price
₹370
Risk free rate of interest
5%
Find answer from below mentioned option
Theoretical minimum price of a European 6 months put option after six months is
₹9.37
₹20.12
₹30.76
₹20.63
MS Ltd. is planning to invest in USA. The annual rates of inflation are 8% in India and 3% in USA. If spot rate is currently ₹75.50/$, what spot rate can the company expect after 3 years?
