1.Mr. Ellsworth is keen on buying value portions of FDTI Ltd. which are presently

selling at $ 965.527 each. He expects that cost of offer may go upto $ 1587.87 or may go

down to $ 480 of every three months. The odds of happening such varieties are 60%

furthermore, 40% individually. A call choice on the portions of FDTI Ltd. can be worked out

toward the finish of a quarter of a year with a strike cost of $ 630.

I. What blend of offer and alternative should Mr. Ellsworth select on the off chance that he

needs an ideal fence?

ii. What ought to be the worth of choice today (the danger free rate is 10% p.a.)?

iii. What is the generally anticipated pace of return on the choice?

2.A level stock curve comparing to the sum rotate derives that the adaptability of supply is:

(a) Zero

(b) Infinite

(c) Equal to one

(d) Greater than zero yet shy of what one

3. A typical interest twist can't be :

(a) Concave from under

(b) Convex from under

(c) Rising vertical to right

(d) A straight line

4.At the moment that expense reduces, sum mentioned increase it is known as

(a) Expansion of interest

(b) Contraction of interest

(c) Increase well known

(d) Decrease pursued

5. Which of coming up next isn't the unique case for the law of interest?

(a) Giffen stock

(b) Level of pay

(c) Future suspicions

(d) Conspicuous necessities

6. Right when esteem adaptability is found between two centers is known as :

(a) Arc adaptability

(b) Cross flexibility

(c) Point flexibility

(d) None of the previously mentioned

7. Luxury stock are cost ......................... while necessities are

price..............

(a) Inelastic Elastic

(b) Elastic, Inelastic

(c) Inelastic, Unitary

(d) Unitary, Elastic

8. The flexibility of substitution between two brilliant substitutes is..........................

(a) Greater than O

(b) Infinity

(c) Less than limitlessness

(d) Zero

9. Inclination of an interest twist is directed by -

(a) its own expense

(b) factors other than its own expense

(c) any of these

(d) None of these.

10. Interest for vehicle lessens in view of extension in cost. It proposes that vehicle and oil are.............

(a) Normal product

(b) Inferior product

(c) Substitute product

(d) Complementary product