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.
The purchase of shares and bonds of Indian companies by Foreign Institutional Investors is called?
Which of the following are those receipts that do not incur any future repayment burden for the government?
Which of the following best describes the primary purpose of the ASBA process?
Socio-Economic and Caste Census was conducted for the first time in ______________.
The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. In India, GST Bill was first in...
With reference to the Indian economy, consider the following statements :
1. ‘Commercial Paper’ is a short-term unsecured promissory note.
Which one of the following is not a tax/duty levied by the Government of India?
With reference to the Ayushman Bharat PM Jan Arogya Yojana,consider the following statements -
I. It was launched as the National Health Protecti...
Which of the following can be defined as those that neither create any liability nor cause any reduction in the government's assets?
What is the purpose of setting up of Small Finance Banks (SFBs) in India?
1. To supply credit to small business units
2. To supply credit ...
