Section C (4 Mark)
Mr. XYZ sells a Nifty Put option with a strike price of Rs. 4000 at a premium of Rs. 21.45 and buys a further OTM Nifty Put option with a strike price Rs. 3800 at a premium of Rs. 3.00 when the current Nifty is at
4191.10, with both options expiring on 31st July.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 3287
* If Nifty closes at 4925

• A.145.95 and -75.05
• B.25.05 and 154.25
• C.-35.05 and 164.95
• D.-181.55 and 18.45

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Section A (1 Mark)
Which one of the following statements is untrue?

• A.Companies financed by private equity or venture capital may be sold on to another private equity investor or venture capitalist
• B.Venture capital finance usually refers to start-up capital for companies in their early days
• C.Venture capital projects often fail and the venture capital is lost
• D.A management buyout occurs when a company is dissatisfied with its management team and pays them to leave the company

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Section A (1 Mark)
First step in developing a Wealth Management Plan is

• A.Analyze problems and solutions
• B.Identify goals and objectives
• C.Implementation of solutions
• D.Identify and clarify the current situation

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Section B (2 Mark)
Mr. A gifted debenture of Rs. 100000 to his wife. She received Rs. 10000 interest which she reinvests and earns Rs. 1000. This Rs. 1000 will be taxable in the hands of

• A.Mrs. A
• B.Mr. A
• C.Mr. A or Mrs. A, at the choice of the Assessing Officer
• D.Not Taxable

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Section B (2 Mark)
Number One Flight Stock currently sells for Rs53. A one-year call option with strike price of Rs58 sells for Rs10, and the risk free interest rate is 5.5%. What is the price of a one-year put with strike price of Rs58?

• A.Rs. 12.12
• B.Rs. 16.00
• C.Rs. 10.00
• D.Rs. 11.97

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