A firm is considering an investment opportunity promising to pay Rs 8,000 in one year and Rs 12,000 in two years. If the prevailing constant rate of return is 6%, what is the maximum price the firm should pay for the project? (Round off to the nearest integer)
Rs 12,000
Rs 16,350
Rs 18,227
Rs 20,000
A stock currently trading at Rs 60 can either rise to Rs 75 or fall to Rs 50 in three months. The three-month risk-free rate is 5%. Using the risk-neutral approach, what is the risk-neutral probability that the stock price increases?
52.0%
78.6%
60.0%
45.0%
An investor opts for a straddle strategy for his portfolio by purchasing a call option and a put option with strike price of Rs 30 and expiration time of 3 months. The call option price is Rs 3 and put option price is Rs 4. What is maximum loss the investor can incur with this strategy?
Rs 7
Rs 3
Rs 4
Rs 1
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The IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 21 Dec 2025, in the September 2025 term: 30 questions for 100 marks in 180 minutes. The first 3 questions are below. Sign in with Google — it is free — to see the whole paper with its answers and explanations, in learning mode or as a timed mock test.
| Feature | Corporate Finance End Term 21 Dec 2025 at a glance |
|---|---|
| Term | September 2025 term |
| Subject | Corporate Finance |
| Course code | BSMS3034 |
| Questions | 30 |
| Marks | 100 |
| Duration | 180 min |
| MCQ | 20 |
| MSQ | 10 |
| Official paper | Corporate Finance 18 Dec 25 |
| Negative marking | No negative marking. |
| Updated |
