Right offering:A rights offering is when a company issues to its existing shareholders a right to buy additional shares in the company. The company offers its shareholder a specific number of shares at a special price. The company will also set a time limit for the shareholder to buy these shares. The shares are often offered at a discounted price to the existing shareholders. In a rights offering, the subscription price at which each share may be offered is generally at a discount to the current market price. Rights are often transferable, allowing the holder to sell them in the open market. Number Of Right Shares: 1Total Shares= Existing + New share = 5+1= 6Value Of Right = (Number Of Right Shares / Total Shares) x (Market Value - Issue Price)Value Of Right = (1/6) x (150-120)? Value Of Right = 0. 166667 x 30? Value Of Right = Rs. 5Alternatively,Market Value Of 5 Existing Holdings = Rs. 150 x 5 = Rs. 750Add: Issue Price Of 1 New Holding = Rs. 120 x 1 = Rs. 120? Value Of Total Holdings = 750 + 120 = Rs. 870Value Of Each Share = 870/6 = Rs. 145Value Of Right = Market Price - Average PriceValue Of Right = 150 - 145?Value Of Right = Rs. 5Thus, option 1 is the correct answer.