Disinvestment in Public Sector Units Quiz

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Questions and Answers

What is disinvestment in public sector units?

  • The process of buying back shares held by the public in public sector units
  • The process of issuing bonds by public sector units
  • The process of selling shares held by the government in public sector units to the public (correct)
  • The process of merging public sector units with private companies

What are tax-free bonds issued by public sector units?

  • Bonds that are exempt from taxes for the investors (correct)
  • Bonds that are issued to the government without any interest
  • Bonds that are issued to the public without any interest
  • Bonds that are exempt from taxes for the issuing company

Which of the following is an example of a public sector unit?

  • Power Grid Corporation of India (correct)
  • Reliance Industries
  • Infosys
  • Tata Consultancy Services

When a person is 'long on option', what does it mean?

<p>The person has the right to buy/sell the underlying asset in the contract (C)</p> Signup and view all the answers

What is the potential loss for a person who is long on an equity option contract?

<p>Equal to the premium amount paid for buying the option (A)</p> Signup and view all the answers

What determines the profit for a person who is long on an equity option contract?

<p>The level of underlying asset price at the time of exercise/expiry of the contract (C)</p> Signup and view all the answers

What is the maximum profit for a seller of an option contract?

<p>The premium received (D)</p> Signup and view all the answers

When can an option writer be assigned an exercised option?

<p>Any time during the life of the option contract (for American Options only) (B)</p> Signup and view all the answers

What is the potential loss for a seller of an option contract?

<p>Unlimited as defined below (D)</p> Signup and view all the answers

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