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

Corporate Finance End Term 21 Dec 2025 — Question 25

Question 25

+4 marksOne or more correct options

Select all that apply.

  1. A

    A one-year call option with strike price of Rs 125 should have price more than Rs 15.

  2. B

    A six-month call option with strike price of Rs 120 should have price less than Rs 15.

  3. C

    The price of a one-year European put option on the same stock is approximately Rs 10.77.

  4. D
Show answer

Correct answers

  • B

    A six-month call option with strike price of Rs 120 should have price less than Rs 15.

  • C

    The price of a one-year European put option on the same stock is approximately Rs 10.77.

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Question 25 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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