Question

Complete the following table using given information :

Sr. No	FV	Share is at	MV
1.	₹ 100	Par	`square`
2.	`square`	Premium ₹ 500	₹ 575
3.	₹ 10	`square`	₹ 5
4.	₹ 200	Discount ₹ 50	`square`

Answer 1

Sr. No	FV	Share is at	MV
1.	₹ 100	Par	₹ 100
2.	₹ 75	Premium ₹ 500	₹ 575
3.	₹ 10	Discount ₹ 5	₹ 5
4.	₹ 200	Discount ₹ 50	₹ 150

Explanation:

1. When the share is at par, MV (Market value) = FV (Face value)
   ∴ MV = FV = ₹ 100
2. FV = MV – Premium = ₹ 575 – ₹ 500 = ₹ 75
3. FV = ₹ 10 and MV = ₹ 5
   Since MV < FV, the share is at a discount.
   Discount = FV – MV = ₹ 10 – ₹ 5 = ₹ 5
4. Discount = FV – MV
   50 = 200 – MV
   MV = ₹ 150