# Thread: What is formula for calculation of this sum? Virtual University

1. ## What is formula for calculation of this sum? Virtual University

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Question No: 46

An investor buys 5 options on shares of at a price of Rs 50 per share. Each option consists
of 100 shares and premium paid is Rs. 2 per share. What would be the total option cost for
investor if the share price is Rs. 55 at the expiry of option?

► Rs. 1,000

► Rs. 1,500

► Rs. 2,500

► Rs. 25,000

( Marks: 1 )

Question No: 47

An investor buys 5 options on shares at a price of Rs 50 per share. Each option consists of
100 shares and premium paid is Rs. 2 per share. What would be the net gain for investor if
the share price is Rs. 55 at the expiry of option?

► Rs. 1,500

► Rs. 2,500

► Rs. 1,000

► Rs. 25,000

2. An investor buys 5 options on shares of at a price of Rs 50 per share. Each option consists
of 100 shares and premium paid is Rs. 2 per share. What would be the total option cost for
investor if the share price is Rs. 55 at the expiry of option?

► Rs. 1,000

► Rs. 1,500

► Rs. 2,500

5 option each option have 100 share
total share is 5 *100 =500
total cost of option is 50*500=25,000

3. is ka correct ans 2nd hy ya 3rd help me
Suppose you need the present value interest factor for 12 percent compounded quarterly for 10 years. If all you have is a PVIF table, you would use the ________ period row and the ________ percent rate column.

40, 12
20.12
40,3
20,6

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