Question 241
Section C (4 Mark)
Suppose an investor Mr. A buys or is holding ABC Ltd. currently trading at Rs. 4758. He decides to establish a collar by writing a Call of strike price Rs. 5000 for Rs. 39 while simultaneously purchasing a Rs. 4700 strike price Put for Rs. 27. Since he pays Rs. 4758 for the stock ABC Ltd., another Rs. 27 for the Put but receives Rs.
39 for selling the Call option, his total investment is Rs. 4746.
What would be the Net Payoff of the Strategy?
* If ABC Ltd closes at 4851
* If ABC Ltd closes at 5267
Suppose an investor Mr. A buys or is holding ABC Ltd. currently trading at Rs. 4758. He decides to establish a collar by writing a Call of strike price Rs. 5000 for Rs. 39 while simultaneously purchasing a Rs. 4700 strike price Put for Rs. 27. Since he pays Rs. 4758 for the stock ABC Ltd., another Rs. 27 for the Put but receives Rs.
39 for selling the Call option, his total investment is Rs. 4746.
What would be the Net Payoff of the Strategy?
* If ABC Ltd closes at 4851
* If ABC Ltd closes at 5267
Question 242
Section A (1 Mark)
A relatively new type of credit derivative is a CDO which stands for ________________.
A relatively new type of credit derivative is a CDO which stands for ________________.
Question 243
Section C (4 Mark)
Mr. XYZ is bearish about Nifty and expects it to fall. He sells a Call option with a strike price of Rs. 2600 at a premium of Rs. 154, when the current Nifty is at 2694. If the Nifty stays at 2600 or below, the Call option will not be exercised by the buyer of the Call and Mr. XYZ can retain the entire premium of Rs.154.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 2900
* If Nifty closes at 2400
Mr. XYZ is bearish about Nifty and expects it to fall. He sells a Call option with a strike price of Rs. 2600 at a premium of Rs. 154, when the current Nifty is at 2694. If the Nifty stays at 2600 or below, the Call option will not be exercised by the buyer of the Call and Mr. XYZ can retain the entire premium of Rs.154.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 2900
* If Nifty closes at 2400
Question 244
Section B (2 Mark)
A January month Nifty Futures contract will expire on the last _____ of January
A January month Nifty Futures contract will expire on the last _____ of January
Question 245
Section C (4 Mark)
Read the senario and answer to the question.
Mr. Adhikari bought agricultural land in Patna in 94-95 for 1.75 lakh. That land was vacant for last so many years. But due to establishing a "Commercial Processing Zone" the Bihar Government has issued a notice for compulsorily acquirement on 12/08/2003. In 2006 government has fixed compensation for Rs. 6.50 lakhs and acquired it on 09/01/2006. Rs. 2 lakh was received by Mr. Adhikari on 07/03/2006. Mr. Adhikari and others were not satisfied with the compensation and file a suit in the court.
Balance compensation paid by Bihar Government on 08/10/2008. The compensation is enhanced by another
1.50 lakhs by the Bihar Government which paid by the Government on 11/12/2008.Compute Capital Gain tax in the hands of Mr. Adhikari for the assessment year 2009-10.
Read the senario and answer to the question.
Mr. Adhikari bought agricultural land in Patna in 94-95 for 1.75 lakh. That land was vacant for last so many years. But due to establishing a "Commercial Processing Zone" the Bihar Government has issued a notice for compulsorily acquirement on 12/08/2003. In 2006 government has fixed compensation for Rs. 6.50 lakhs and acquired it on 09/01/2006. Rs. 2 lakh was received by Mr. Adhikari on 07/03/2006. Mr. Adhikari and others were not satisfied with the compensation and file a suit in the court.
Balance compensation paid by Bihar Government on 08/10/2008. The compensation is enhanced by another
1.50 lakhs by the Bihar Government which paid by the Government on 11/12/2008.Compute Capital Gain tax in the hands of Mr. Adhikari for the assessment year 2009-10.
