MBA SEMESTER-4

ASSIGNMENT – Set 1
Name :……………………….. Registration No. :………………………. Learning Center :………………………. Learning Center Code :……………………… Course :………………………. Subject :………………………. Semester :………………………. Module No. :………………………. Date of submission :………………………. Marks awarded :……………………….

Directorate of Distance Education Signature of Sikkim Manipal University Center Signature of Evaluator II Floor, Syndicate House Manipal- 576104

Signature of Coordinator

reliability. Assignments should be submitted within the time given. Write in your own handwriting Write in your own words. Assignments which are not original/ copied shall be awarded zero marks. Please answer all the Assignments on ruled sheets. Write neatly and legibly in the prescribed format Comments by the Subject Evaluator: (Subject expert will give comments on overall content. correctness and appropriateness of information provided) Suggestions for improvement: (Subject expert will give areas of improvement and possible ways/ methods to follow to improve) .Important Note to the Students: The student must submit all the assignments given per course per semester to the learning Center. Assignment marks will be accounted for your Internal Assessment. Do not copy.

Content that has been directly copied from the Internet will NOT be accepted. Ensure that you answer all questions according to the marks allocated. 2013) 2. 5. Assignments that have been copied and shared among students will be automatically rejected and disqualified. Follow assignment format and complete all the details for each assignment individually. Late submissions will NOT be accepted. 3. .Last Date to Submit the Assignment Set-1 at the respective LCs: . Completed assignments must be hand written neatly and hard copies should be submitted on or before the dates mentioned above. Please attempt all the assignments individually and independently. (January 30 th . 4. All students must sign the acknowledgement sheet while submitting assignments.January 30 th . 7. 6. 2013 INSTRUCTIONS FOR ASSIGNMENT SUBMISSION 1.

000 worth of perfume (FF 20.000) from a French firm.Master of Business Administration. Define Interest Rate Parity.1 (60 Marks) Note: Answer all questions (with 300 to 400 words each) must be written within 6-8 pages. What is a credit transaction and a debit transaction? Which are the broad categories of international transactions classified as credits and as debits? Q3. the IDA and the IFC? Q2. The American distributor must make the payment in 90 days in French francs.2000 90 day forward rate 0. An American firm purchases $4. What are the goals and functions of the World Bank.000 or FF 20. Present spot rate $ 0.000 and ii) there are no transaction costs. Q4. would an opportunity still exist for CIA? Q5. Each Question carries 10 marks 6 X 10=60 Q1.2400. (a) What is the premium or discount on the forward French francs? What is the interest differential between US and France? Is there an incentive for covered interest arbitrage? (b) If there is a CIA. Write a note on exchange rate regime and foreign exchange market in India. Define a futures contract. The following quotation and expectations exist for the FF.MBA Semester 4 MF0015 –International Financial Management.2200 US interest rate 15% French interest rate 10% Your expectation of the SR 90 days hence 0. how can an arbitrageur take advantage of the situation? Assume i) the arbitrageur is willing to borrow $4. What are the different types of IRP? . What are the different types of futures contracts? What are the advantages of using stock index futures? Q6.4 Credits (Book ID: B1316) Assignment Set. (c) If transaction costs are $50.