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

Question 3: An investor opts for a straddle strategy for his portfoli…

Question 3

+3 marksOne correct option

An investor opts for a straddle strategy for his portfolio by purchasing a call option and a put option with strike price of Rs 30 and expiration time of 3 months. The call option price is Rs 3 and put option price is Rs 4. What is maximum loss the investor can incur with this strategy?

  1. A

    Rs 7

  2. B

    Rs 3

  3. C

    Rs 4

  4. D

    Rs 1

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Correct answer

  • A

    Rs 7

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Question 3 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 3 marks.

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