Question
Derivatives can be used to hedge the risk. A person can
protect himself from downside risk by entering into which of the following position?Solution
 Buying a stock and put option on that will give protection against the downside  risk. If the price of the stock falls to even zero then the put option can be exercised and amount equivalent to exercise price can be recovered (against the payment of premium). If the price of the stock rises then put will simply expire worthless (against a payment of premium).
The bar graph given below shows the number of JK Tyres manufactured by a Showroom on five different days. Read the graph carefully and answer the questi...
Train ‘X’ takes 54 seconds to pass a tree and 48 seconds to completely cross train ‘Y’ when they are moving in opposite directions. If the speed...
The selling prices of articles A and B are in a ratio of 4:5. If the shopkeeper made a profit of Rs. 400 on article A and a 30% profit on article B, and...
What is the area of an equilateral triangle with a side length of 8 cm?
If log₃(x + 1) − log₃(x − 1) = 2, find x.
A fan manufacturer found that 27% of the total product is defective. If the number of products in good condition is 4088 then find out the number of def...
If log 2 = 0.3210 and log 3 = 0.4661, the value of log5 1024 is:
A man invested $4,800 in a scheme offering compound interest compounded annually. If the difference between the interest earned in the 2nd year and the ...
The derivative of y = eË£ · cos(x) isÂ
In 2023, Department D overspent by 10% of its allocated budget. What is the total expenditure of Department D after the overspending?
