Question
Derivatives can be used to hedge the risk. A person can
protect himself from downside risk by entering into which of the following position?Solution
 Buying a stock and put option on that will give protection against the downside  risk. If the price of the stock falls to even zero then the put option can be exercised and amount equivalent to exercise price can be recovered (against the payment of premium). If the price of the stock rises then put will simply expire worthless (against a payment of premium).
- Read the given statements and conclusion carefully. Assuming the information given in the statement is true, even if it appears to be at variance with comm...
Statements:No town is a city.
All cities are islands.
Conclusions:I. No island is a town. Â
II. All islands are cities.
Statements:
Only a few H are G.
Some G is not K.
All L is K.
Conclusions:
Some H can be K.
All L can never be G.
Statements:Â
Only a few School are Station.
Only a few Stations are Hospital.
All Station are Police.
All Police a...
Statements:
All Curtain are Wall
Only a few Rod are Curtain
No Sticker is Rod
Conclusions:
I. No Sticker is Wall
II. All Sticker are Wall is a possibility
In the following question, some conclusions are given and some statements are given you have to take the given conclusions to be true even if they seem...
Conclusions:
I. All Machines being Tools is a possibility.
II. No screw is a Forks.
III. A few Scissors may be Machines.
Statements:
Statements:
Only a few blazers are red
Some red are black
No black are tie
Conclusions:
I. Some black are not red...
Statements:Â
Only a few Pen are Pencils.
No Pencil is Rubber.
Only a few Pencils are Sharpner.
Only a few Sharpne...
In the question below there are three statements followed by two conclusions I and II. You have to take the three given statements to be true even if ...
