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Corporate Finance · End Term · 21 Dec 2025 · September 2025 term

Question 22: Consider a put option and a call option on the same stoc…

Question 22

+4 marksOne or more correct options

Consider a put option and a call option on the same stock with the same strike price of Rs 250 and time to maturity of three months. Select the correct statements

Select all that apply.

  1. A

    If the stock price at expiration is Rs 260, call option is in the money.

  2. B

    If the stock price at expiration is Rs 260, put option is out of the money.

  3. C

    If the stock price at expiration is Rs 240, call option is in the money.

  4. D

    If the stock price at expiration is Rs 240, put option is in the money.

Show answer

Correct answers

  • A

    If the stock price at expiration is Rs 260, call option is in the money.

  • B

    If the stock price at expiration is Rs 260, put option is out of the money.

  • D

    If the stock price at expiration is Rs 240, put option is in the money.

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Question 22 of 30 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 21 Dec 2025, in the September 2025 term (Corporate Finance 18 Dec 25). It carries 4 marks.

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