Question

Find the purchase price of a share of FV Rs 100 if it is at premium of Rs 30. The brokerage rate is 0.3%.

Answer 1

MV of the share = FV of the share + Premium = Rs 100 + Rs 30 = Rs 130

Brokerage = 0.3% of Rs 130 = $\frac{0.3}{100}\times 130$ = Rs 0.39

∴ Purchase price of the share = MV of the share + Brokerage = Rs 130 + Rs 0.39 = Rs 130.39

Thus, the purchase price of the share is Rs 130.39.