Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 4th Semester (Fourth Semester) R15 2018 June 724AH Financial Derivatives Previous Question Paper
Code No: 724AH
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA IV Semester Examinations, June/July-2018
FINANCIAL DERIVATIVES
Time: 3 hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A.
Part B consists of 5 Units. Answer any one full question from each unit. Each question
carries 10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 marks = 25
1. Give brief note on the following:
a) Derivative [5]
b) Currency Forwards [5]
c) Margin in exchange traded derivatives [5]
d) Straddle [5]
e) Equity Index Swaps. [5]
PART - B 5 ? 10 marks = 50
2. Discuss the fundamental linkage between the Spot and Derivatives markets. [10]
OR
3. Argue for and against the criticism on misuse of derivative instruments. [10]
4.a) A stock has a spot price of $100. The riskless interest rate is 7% per year (compounded
annually), and the expected dividend on the stock is $3, to be received a year from now.
What should be the one-year futures price?
b) The price of one ounce of gold for forward delivery in three months is $435, the interest
rate on a 91-day Treasury bill is 1% and the quarterly carrying cost as a percentage of
the spot price is 0.2%. Calculate the spot price of an ounce of gold. [5+5]
OR
5. Compare and contrast the Forwards and Futures contracts. [10]
6. A stock price is currently $50. It is known that at the end of two months it will be either
$53 or $48. The risk-free interest rate is 10% per annum with continuous compounding.
What is the value of a two- month European call option with a strike price of $49? [10]
OR
7. What is the price of a European call option on a non-dividend-paying stock when the
stock price is $52, the strike price is $50, the risk-free interest rate is 12% per annum,
the volatility is 30% per annum, and the time to maturity is three months? [10]
8. Discuss the trading pattern in the commodities markets in India. [10]
OR
9. ?There does not seem to be sufficient justification for commodity exchanges in India,
considering the fact that it is generally viewed as a speculative activity and is largely
shunned by hedgers, farmers or small traders and business houses?- Discuss. [10]
R15
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Code No: 724AH
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA IV Semester Examinations, June/July-2018
FINANCIAL DERIVATIVES
Time: 3 hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A.
Part B consists of 5 Units. Answer any one full question from each unit. Each question
carries 10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 marks = 25
1. Give brief note on the following:
a) Derivative [5]
b) Currency Forwards [5]
c) Margin in exchange traded derivatives [5]
d) Straddle [5]
e) Equity Index Swaps. [5]
PART - B 5 ? 10 marks = 50
2. Discuss the fundamental linkage between the Spot and Derivatives markets. [10]
OR
3. Argue for and against the criticism on misuse of derivative instruments. [10]
4.a) A stock has a spot price of $100. The riskless interest rate is 7% per year (compounded
annually), and the expected dividend on the stock is $3, to be received a year from now.
What should be the one-year futures price?
b) The price of one ounce of gold for forward delivery in three months is $435, the interest
rate on a 91-day Treasury bill is 1% and the quarterly carrying cost as a percentage of
the spot price is 0.2%. Calculate the spot price of an ounce of gold. [5+5]
OR
5. Compare and contrast the Forwards and Futures contracts. [10]
6. A stock price is currently $50. It is known that at the end of two months it will be either
$53 or $48. The risk-free interest rate is 10% per annum with continuous compounding.
What is the value of a two- month European call option with a strike price of $49? [10]
OR
7. What is the price of a European call option on a non-dividend-paying stock when the
stock price is $52, the strike price is $50, the risk-free interest rate is 12% per annum,
the volatility is 30% per annum, and the time to maturity is three months? [10]
8. Discuss the trading pattern in the commodities markets in India. [10]
OR
9. ?There does not seem to be sufficient justification for commodity exchanges in India,
considering the fact that it is generally viewed as a speculative activity and is largely
shunned by hedgers, farmers or small traders and business houses?- Discuss. [10]
R15
10. Explain the mechanism of a Currency swap, using a flow chart / diagram. [10]
OR
11. Discuss the utility of Credit Default Swap and Credit linked Notes in credit risk
management? [10]
--ooOoo--
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Code No: 724AH
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA IV Semester Examinations, June/July-2018
FINANCIAL DERIVATIVES
Time: 3 hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A.
Part B consists of 5 Units. Answer any one full question from each unit. Each question
carries 10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 marks = 25
1. Give brief note on the following:
a) Derivative [5]
b) Currency Forwards [5]
c) Margin in exchange traded derivatives [5]
d) Straddle [5]
e) Equity Index Swaps. [5]
PART - B 5 ? 10 marks = 50
2. Discuss the fundamental linkage between the Spot and Derivatives markets. [10]
OR
3. Argue for and against the criticism on misuse of derivative instruments. [10]
4.a) A stock has a spot price of $100. The riskless interest rate is 7% per year (compounded
annually), and the expected dividend on the stock is $3, to be received a year from now.
What should be the one-year futures price?
b) The price of one ounce of gold for forward delivery in three months is $435, the interest
rate on a 91-day Treasury bill is 1% and the quarterly carrying cost as a percentage of
the spot price is 0.2%. Calculate the spot price of an ounce of gold. [5+5]
OR
5. Compare and contrast the Forwards and Futures contracts. [10]
6. A stock price is currently $50. It is known that at the end of two months it will be either
$53 or $48. The risk-free interest rate is 10% per annum with continuous compounding.
What is the value of a two- month European call option with a strike price of $49? [10]
OR
7. What is the price of a European call option on a non-dividend-paying stock when the
stock price is $52, the strike price is $50, the risk-free interest rate is 12% per annum,
the volatility is 30% per annum, and the time to maturity is three months? [10]
8. Discuss the trading pattern in the commodities markets in India. [10]
OR
9. ?There does not seem to be sufficient justification for commodity exchanges in India,
considering the fact that it is generally viewed as a speculative activity and is largely
shunned by hedgers, farmers or small traders and business houses?- Discuss. [10]
R15
10. Explain the mechanism of a Currency swap, using a flow chart / diagram. [10]
OR
11. Discuss the utility of Credit Default Swap and Credit linked Notes in credit risk
management? [10]
--ooOoo--
FirstRanker.com - FirstRanker's Choice
Code No: 724AH
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA IV Semester Examinations, June/July-2018
FINANCIAL DERIVATIVES
Time: 3 hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A.
Part B consists of 5 Units. Answer any one full question from each unit. Each question
carries 10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 marks = 25
1. Give brief note on the following:
a) Derivative [5]
b) Currency Forwards [5]
c) Margin in exchange traded derivatives [5]
d) Straddle [5]
e) Equity Index Swaps. [5]
PART - B 5 ? 10 marks = 50
2. Discuss the fundamental linkage between the Spot and Derivatives markets. [10]
OR
3. Argue for and against the criticism on misuse of derivative instruments. [10]
4.a) A stock has a spot price of $100. The riskless interest rate is 7% per year (compounded
annually), and the expected dividend on the stock is $3, to be received a year from now.
What should be the one-year futures price?
b) The price of one ounce of gold for forward delivery in three months is $435, the interest
rate on a 91-day Treasury bill is 1% and the quarterly carrying cost as a percentage of
the spot price is 0.2%. Calculate the spot price of an ounce of gold. [5+5]
OR
5. Compare and contrast the Forwards and Futures contracts. [10]
6. A stock price is currently $50. It is known that at the end of two months it will be either
$53 or $48. The risk-free interest rate is 10% per annum with continuous compounding.
What is the value of a two- month European call option with a strike price of $49? [10]
OR
7. What is the price of a European call option on a non-dividend-paying stock when the
stock price is $52, the strike price is $50, the risk-free interest rate is 12% per annum,
the volatility is 30% per annum, and the time to maturity is three months? [10]
8. Discuss the trading pattern in the commodities markets in India. [10]
OR
9. ?There does not seem to be sufficient justification for commodity exchanges in India,
considering the fact that it is generally viewed as a speculative activity and is largely
shunned by hedgers, farmers or small traders and business houses?- Discuss. [10]
R15
10. Explain the mechanism of a Currency swap, using a flow chart / diagram. [10]
OR
11. Discuss the utility of Credit Default Swap and Credit linked Notes in credit risk
management? [10]
--ooOoo--
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This post was last modified on 23 October 2020