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Corporate Finance · End Term · 10 May 2026 · January 2026 term · Set 1

Question 16: Suppose you purchased a call option 26 days ago for Rs. …

Question 16

+3 marksOne correct option

Suppose you purchased a call option 26 days ago for Rs. 4.50. The call option has a strike price of Rs. 84, and the stock is now trading for Rs. 92. If you exercise the call option today, what will be your holding period return?

  1. A

    4.17%

  2. B

    28.57%

  3. C

    53.17%

  4. D

    77.78%

Show answer

Correct answer

  • D

    77.78%

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Question 16 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 10 May 2026, in the January 2026 term (Corporate Finance 06 May 26). It carries 3 marks.

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