Present value of portfolio is Rs 500 and current option price is Rs 1200 then value of stock included in portfolio will be

The correct answer is C.

The value of a portfolio is the sum of the values of its individual assets. In this case, the portfolio consists of a stock and an option. The value of the stock is unknown, but we can calculate it by subtracting the value of the option from the value of the portfolio. The value of the option is given as Rs 1200, and the value of the portfolio is given as Rs 500. Therefore, the value of the stock is Rs 1200 – Rs 500 = Rs 700.

Option A is incorrect because it is the value of the portfolio plus the value of the option. Option B is incorrect because it is the negative of the value of the portfolio plus the value of the option. Option D is incorrect because it is the negative of the value of the portfolio.