MR ROKI is interested to purchase equity shares of BOSTON Ltd, which are currently selling at Rs 650 each. He expects that the price of Share may go up to Rs 830 or may go down to Rs 530 in three months. A call option on the Shares of Boston Ltd. can be exercised at the end of three months with a strike price of Rs 680. What combination of Share and Option should Mr Roki select if he wants a perfect hedge

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A: Here, Fixed Dividend is $0.81 Value of Preferred Stock is $7.92

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Q: O None of the options are correct. D

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A: Preferred stock is a type of security which has a higher claim on dividend payments than common…

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