DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2018.
Fourth Semester
INVESTMENT AND DERIVATIVES MARKETS
(Upto 2012-13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
PART A — x 8 40 marks)
Answer any FIVE questions.
1. Explain the concept and importants of debt portfolio
management.
2. What do you mean by Risk and return structure?
3. Explain about bond swaps?
4. Briefly explain the different Equity Valuation models.
5. Why are stock futures better than the badla system?
Explain.
6. Enumerate about the Call option and put option in
derivatives market.
7. Discuss briefly the origin of stock index future.
8. What do you mean by Debt Market? State its essentials
features.
Sub. Code
43
DE-3777
2
wk7
PART B — × 15 60 marks)
Answer any FOUR questions.
9. How can the mutual funds and treasury funds use stock
index futures contract for hedging?
10. Explain how the forward price is determined. What is the
role of spot price in determining forward price?
11. Briefly explain the intrinsic value of option and Time
value of option.
12. Write detailed note on classification of financial
instruments for accounting purposes.
13. Explain the following strategies:
Short stock long call
Long stock long put
Long stock short call
Short stock short put
and also explain valuation of Expiration.
14. Explain the factors governing equity market growth.
15. Explain any Equity valuation from the followings:
Dividend model
Zero growth model
Constant growth model
Multiple growth model.
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