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Question 1

Section C (4 Mark)

Mr. Peter sells a Nifty Put option with a strike price of Rs. 4000 at a premium of Rs. 21.45 and buys a further OTM Nifty Put option with a strike price Rs. 3800 at a premium of Rs. 3.00 when the current Nifty is at 4191.10, with both options expiring on 31st July.

What would be the Net Payoff of the Strategy?

* If Nifty closes at 3800

* If Nifty closes at 4500

Options :

A : -81.55 and 18.45

B : -81.55 and 18.55

C : 0 and -81.55

D : -181.55 and 18.45

Answer: D

Question 2

Section B (2 Mark)

Rajiv's company was just surprised by a new competitor in their field. Rajiv wants to plan a way for his business to retake the lead. For this purpose, Rajiv offered a plan to compete in the market. Which one of the following parts of the strategic landscape has been described?

Options :

A : Strategy initiation

B : Strategy formulation

C : Strategy implementation

D : Strategy assessment

Answer: B

Question 3

Section C (4 Mark)

Read the senario and answer to the question.

Jogen commuted his 40% of pension in April, 2008 with Rs. 2,15,000.What would be the taxable amount on commuted pension received by Jogen, if he would retire from a private organization?

Options :

A : Rs. 1,07,500

B : Rs. 35,833

C : Rs. 1,70,167

D : Rs. Nil

Answer: B

Question 4

Section A (1 Mark)

A review of portfolio should be done when

Options :

A : One witnesses a change in micro level factors

B : One witnesses a change in macro level factors

C : One witnesses new products floating in the market

D : All of the above

Answer: D

Question 5

Section A (1 Mark)

______________ is based on a particular (theoretical) lottery game that leads to a random variable with infinite expected value, i.e., infinite expected payoff, but would nevertheless be considered to be worth only a very small amount of money.

Options :

A : Alias Paradox

B : St. Petersburg Paradox

C : Cramer-s Solution

D : The Friedman-Savage Puzzle

Answer: B