Section C (4 Mark)
Suppose ABC Ltd. is trading at Rs 4500 in June. An investor, Mr. A, shorts Rs 4300 Put by selling a July Put for Rs. 24 while shorting an ABC Ltd. stock. The net credit received by Mr. A is Rs. 4500 + Rs. 24 = Rs.
4524.
What would be the Net Payoff of the Strategy?
* If ABC Ltd closes at 4053
* If ABC Ltd closes at 5025

Section B (2 Mark)
Reproduction cost has been estimated as Rs 350,000 for a property with a 70-year economic life. The current effective age of the property is 15 years. The value of the land is estimated to be Rs 55,000. What is the estimated market value of the property using the cost approach, assuming no external or functional obsolescence?

Section C (4 Mark)
Dab Ltd manufactures, markets, and services automated teller machines. The following are selected numbers from the financial statements for 1992 and 1993 (in millions):

The firm had capital expenditures of Rs15 million in 1992 and Rs18 million in 1993. The working capital in
1991 was Rs180 million.
Estimate the cash flows to equity in 1992 and 1993. (in Rs Millions)

Section A (1 Mark)
For making a personal financial statement for a client, the optimum cash levels would be

Section B (2 Mark)
According to the put-call parity theorem, the value of a European put option on a non-dividend paying stock is equal to: