CWM_LEVEL_2 Exam Dumps : Chartered Wealth Manager (CWM) Certification Level II Examination

Section B (2 Mark)

Consider a one-year maturity call option and a one-year put option on the same stock, both with striking price Rs45. If the risk-free rate is 4%, the stock price is Rs48, and the put sells for Rs1.50, what should be the price of the call?

Section C (4 Mark)

The required rate of return on an investment is 12%, you estimate that a firm X’s dividend will grow as follows:

For the subsequent years you expect the dividend to grow at the more modest rate of 7% annually. What is the maximum price that you should pay for this stock?

Section A (1 Mark)

A good wealth management plan must include an analysis of all of the following EXCEPT