M.B.A.(G) DEGREE EXAMINATION, APRIL 2016
Fourth Semester
FINANCIAL DERIVATIVES
(2012 onwards)
Time 3 Hours Maximum 75 Marks
Section A 3 15)
Answer all the questions.
1. Highlight the functions of financial derivates.
2. What are the features of forward contract?
3. Differentiate between call option and put option.
4. Why Hedge strategies are important?
5. Write short notes on "International Swaps".
Section B 10 50)
Answer all the questions, choosing either or
All questions carry equal marks.
6. Explain the types of financial derivates.
Or
What are the issues involved in index construction?
Sub. Code
641415
RW-10776
2
Sp 6
7. Discuss the features of convertibles and explain how
the convertibles are valued?
Or
Elaborate the origin of futures market.
8. Analyze the implication of futures on fixed income
and long term securities.
Or
Explain Black Scholes model.
9. Explain the hedge management process.
Or
Discuss the factors affecting hedging.
10. Enumerate the gains from swaps.
Or
Write short notes on leveraged buy outs
debt collating.
Section C 10 10)
Compulsory.
11. A futures contract is a derivative, but the futures
exchange doesn't call them 'derivatives', they call them
'futures'. Comment.