{"id":46829,"date":"2024-04-15T22:18:03","date_gmt":"2024-04-15T22:18:03","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=46829"},"modified":"2024-04-15T22:18:03","modified_gmt":"2024-04-15T22:18:03","slug":"current-value-of-stock-including-in-portfolio-is-subtracted-from-present-value-of-portfolio-to-calculate","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/current-value-of-stock-including-in-portfolio-is-subtracted-from-present-value-of-portfolio-to-calculate\/","title":{"rendered":"Current value of stock including in portfolio is subtracted from present value of portfolio to calculate"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;last month option price&#8221; option2=&#8221;last year option price&#8221; option3=&#8221;current option price&#8221; option4=&#8221;future option price&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: C. current option price.<\/p>\n<p>The current option price is the price that an option would be sold for at the current time. It is calculated by taking the present value of the option&#8217;s payoff and subtracting the current value of the stock.<\/p>\n<p>The present value of the option&#8217;s payoff is the amount of money that the option holder would receive if they exercised the option at the current time. It is calculated by taking the future value of the option&#8217;s payoff and discounting it back to the present using a discount rate.<\/p>\n<p>The current value of the stock is the price that the stock would be sold for at the current time. It is calculated by taking the future value of the stock&#8217;s price and discounting it back to the present using a discount rate.<\/p>\n<p>Therefore, the current option price is calculated by taking the present value of the option&#8217;s payoff and subtracting the current value of the stock.<\/p>\n<p>The other options are incorrect because they do not take into account the current value of the stock.<\/p>\n<p>A. last month option price: This is the price that an option would have been sold for last month. It is not the current option price because the current value of the stock has changed since last month.<\/p>\n<p>B. last year option price: This is the price that an option would have been sold for last year. It is not the current option price because the current value of the stock has changed since last year.<\/p>\n<p>D. future option price: This is the price that an option is expected to be sold for in the future. It is not the current option price because the current value of the stock is not known in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;last month option price&#8221; option2=&#8221;last year option price&#8221; option3=&#8221;current option price&#8221; option4=&#8221;future option price&#8221; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-46829","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Current value of stock including in portfolio is subtracted from present value of portfolio to calculate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/current-value-of-stock-including-in-portfolio-is-subtracted-from-present-value-of-portfolio-to-calculate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Current value of stock including in portfolio is subtracted from present value of portfolio to calculate\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;last month option price&#8221; 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