Question

How much money will be required to buy 200, Rs. 25 shares at a premium of Rs. 2?

• A. Rs.5400
• B. Rs.2400
• C. Rs.3400
• D. Rs.4400

Answer 1

The correct option is A Rs.5400

Rs 25 shares at a premium of Rs 2 means ,nominal value of share is 25 ans its market value is $25+2=Rs.27$

$\therefore$Money required to buy $1$ share $=Rs.27$

$\therefore$ Money required to buy $200$ share$=27\times 200=Rs.5400$