Question
An investor will most likely exercise a put option when
the price of the stock is:Solution
A put option gives the holder the right but not the obligation to sell the underlying asset at the strike price. Therefore a put option is exercised when the price of the stock is below the strike price. The owner of a put option has a benefit when the price of the underlying falls as the holder is able to sell it at a higher price through option as compared to the market price. Premium has nothing to do in case of exercising the option. This is taken into account while calculating the net profit.
Which of the following is a program that uses a variety of different approaches to identify and eliminate spam?
An interface that communicates with other tiers in a three-tier architecture structure is known as ________.
For intra-State sales, the GST is divided between the Centre and the State in the ratio?
Which of the following is a limitation of accounting that can affect the accuracy and usefulness of financial statements?
The 'Revenue Recognition' principle requires that revenue should be recognized when:
An asset is purchased for Rs.50,000 on which depreciation is provided annually according to the straight-line method, the useful life is 10 years and ...
Which of the following is an example of capital expenditure?
Which of the following portals was recently launched by IRDAI for grievance redressal?
Which of the following is NOT a stage in the formation of a company?
Which of the following is NOT a primary objective of Corporate Restructuring?
