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Corporate Finance · Quiz 2 · 16 Mar 2025 · January 2025 term

Question 20: If Nikita pays p for an insurance policy that would pay …

Question 20

+4 marksOne correct option

Based on the above data, answer the given subquestions.

If Nikita pays p for an insurance policy that would pay her 600 units if she suffered a severe injury, then she would be sure to have an income of 800-p regardless of whether she is injured. What would be the largest price that Nikita would be willing to pay for such insurance?

  1. A

    16.5 units

  2. B

    187.5 units

  3. C

    120.5 units

  4. D

    244.5 units

Show answer

Correct answer

  • B

    187.5 units

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Question 20 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 16 Mar 2025, in the January 2025 term (IIT M DEGREE AN EXAM QDB2 16 Mar 2025). It carries 4 marks.

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