Disinvestment in Public Sector Units Quiz

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What is disinvestment in public sector units?

The process of selling shares held by the government in public sector units to the public

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

Bonds that are exempt from taxes for the investors

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

Power Grid Corporation of India

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

The person has the right to buy/sell the underlying asset in the contract

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

Equal to the premium amount paid for buying the option

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

The level of underlying asset price at the time of exercise/expiry of the contract

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

The premium received

When can an option writer be assigned an exercised option?

Any time during the life of the option contract (for American Options only)

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

Unlimited as defined below

"Test Your Knowledge on Disinvestment in Public Sector Units" - Take this quiz to enhance your understanding of disinvestment in public sector units, including the concept, process, and examples. Challenge yourself with questions on the role of the government, share issues, and the impact of disinvestment. Sharpen your expertise in finance and economics with this informative quiz.

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