Section C (4 Mark)
Arvind Ltd. currently EPS is Rs.5. Its return on equity (ROE) is 25% and it retains 60% of its earning. Stocks of similar risk are priced to return 18%. What is the intrinsic value of Arvind Ltd's Stock?

Section A (1 Mark)
Which of the following is true regarding the resistance level?

Section B (2 Mark)
A collar with a net outlay of approximately zero is an options strategy that

Section C (4 Mark)
Mr. XYZ sells a Nifty Put option with a strike price of Rs. 4000 at a premium of Rs. 21.45 and buys a further OTM Nifty Put option with a strike price Rs. 3800 at a premium of Rs. 3.00 when the current Nifty is at
4191.10, with both options expiring on 31st July.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 3287
* If Nifty closes at 4925

Section A (1 Mark)
Hedge funds often seek to take advantage of market inefficiencies such as: