QUESTION NO: 1
Section C (4 Mark)
Mr. XYZ is bullish on Nifty when it is at 4191.10. He sells a Put option with a strike price of Rs. 4100 at a premium of Rs. 170.50 expiring on 31st July. If the Nifty index stays above 4100, he will gain the amount of premium as the Put buyer won't exercise his option. In case the Nifty falls below 4100, Put buyer will exercise the option and the Mr. XYZ will start losing money. If the Nifty falls below 3929.50, which is the breakeven point, Mr. XYZ will lose the premium and more depending on the extent of the fall in Nifty.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 3400
* If Nifty closes at 4800
Section C (4 Mark)
Mr. XYZ is bullish on Nifty when it is at 4191.10. He sells a Put option with a strike price of Rs. 4100 at a premium of Rs. 170.50 expiring on 31st July. If the Nifty index stays above 4100, he will gain the amount of premium as the Put buyer won't exercise his option. In case the Nifty falls below 4100, Put buyer will exercise the option and the Mr. XYZ will start losing money. If the Nifty falls below 3929.50, which is the breakeven point, Mr. XYZ will lose the premium and more depending on the extent of the fall in Nifty.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 3400
* If Nifty closes at 4800
Correct Answer: D
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QUESTION NO: 2
Section A (1 Mark)
The legal heir of the deceased who receives family pension is allowed a standard deduction from such family pension received to the extent of:
Section A (1 Mark)
The legal heir of the deceased who receives family pension is allowed a standard deduction from such family pension received to the extent of:
Correct Answer: D
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QUESTION NO: 3
Section A (1 Mark)
Liquid assets comprise
Section A (1 Mark)
Liquid assets comprise
Correct Answer: D
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QUESTION NO: 4
Section A (1 Mark)
Which of the following is NOT a major consideration in the asset allocation process?
Section A (1 Mark)
Which of the following is NOT a major consideration in the asset allocation process?
Correct Answer: B
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QUESTION NO: 5
Section A (1 Mark)
The goal of the Dow theory is to
Section A (1 Mark)
The goal of the Dow theory is to
Correct Answer: B
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QUESTION NO: 6
Section B (2 Mark)
The current market price of a share of XYZ stock is Rs50. If a call option on this stock has a strike price of Rs45, the call
Section B (2 Mark)
The current market price of a share of XYZ stock is Rs50. If a call option on this stock has a strike price of Rs45, the call
Correct Answer: A
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QUESTION NO: 7
Section A (1 Mark)
A firm in an industry that is very sensitive to the business cycle will likely have a stock beta ___________.
Section A (1 Mark)
A firm in an industry that is very sensitive to the business cycle will likely have a stock beta ___________.
Correct Answer: C
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QUESTION NO: 8
Section B (2 Mark)
Mr.Dinesh is transferred to Delhi and is paid a shifting allowance of Rs.20000 by his employers out of which he spends Rs.18000 for shifting his family and personal effects. Which of the following is true?
Section B (2 Mark)
Mr.Dinesh is transferred to Delhi and is paid a shifting allowance of Rs.20000 by his employers out of which he spends Rs.18000 for shifting his family and personal effects. Which of the following is true?
Correct Answer: C
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QUESTION NO: 9
Section A (1 Mark)
A Wealth Management model in which private client and Institutional Asset Management are kept entirely separate is known as
Section A (1 Mark)
A Wealth Management model in which private client and Institutional Asset Management are kept entirely separate is known as
Correct Answer: C
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QUESTION NO: 10
Section B (2 Mark)
In _____________ first the cost incurred by the supplier of property is determined. An appropriate cost plus mark-up is then added to the cost so as to arrive at an appropriate profit in the light of the functions performed and market conditions.
Section B (2 Mark)
In _____________ first the cost incurred by the supplier of property is determined. An appropriate cost plus mark-up is then added to the cost so as to arrive at an appropriate profit in the light of the functions performed and market conditions.
Correct Answer: D
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QUESTION NO: 11
Section B (2 Mark)
Profitability Index is
Section B (2 Mark)
Profitability Index is
Correct Answer: B
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QUESTION NO: 12
Section C (4 Mark)
Amit an industrialist wants to buy a flat in a housing society presently costing Rs. 35,00,000/- after 6 years.
The cost of the house is expected to increase by 15% p.a for the first 3 years and by 10% in the remaining years. Amit wants to start a SIP with monthly contributions in Birla Front Line Equity Mutual Fund to pay for the down payment of the house which would be 25% of the house value at that time. You as a CWM expect that the fund would give ROI of 14% p.a. compounded monthly in the next 10 years. Please advise Amit the monthly SIP amount starting at the beginning of every month for the next 6 years to fulfill his goal of buying the Flat he desires.
Section C (4 Mark)
Amit an industrialist wants to buy a flat in a housing society presently costing Rs. 35,00,000/- after 6 years.
The cost of the house is expected to increase by 15% p.a for the first 3 years and by 10% in the remaining years. Amit wants to start a SIP with monthly contributions in Birla Front Line Equity Mutual Fund to pay for the down payment of the house which would be 25% of the house value at that time. You as a CWM expect that the fund would give ROI of 14% p.a. compounded monthly in the next 10 years. Please advise Amit the monthly SIP amount starting at the beginning of every month for the next 6 years to fulfill his goal of buying the Flat he desires.
Correct Answer: A
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