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MF0015 - Sem 4 - Fall 2011
MF0015 - Sem 4 - Fall 2011
Master of Business Administration - MBA Semester 4 Subject Code MF0015 Subject Name International Financial Management 4 Credits
(Book ID: B1316)
Assignment Set- 1 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions.
Q.1 What is meant by BOP? How are capital account convertibility and current account
convertibility different? What is the current scenario in India? Q.2 What is arbitrage? Explain with the help of suitable example a two-way and a three
way arbitrage. Q3. You are given the following information: Spot EUR/USD : 0.7940/0.8007 Three months swap: 25/35 Calculate three month EUR/USD rate.
Q.4 Q.5
Explain various methods of Capital budgeting of MNCs. a. What are depository receipts? b. Boeing commercial Airplane Co. manufactures all its planes in United States and
prices them in dollars, even the 50% of its sales destined for overseas markets. Assess Boeings currency risk. How can it cope with this risk? Q.6 Distinguish between Eurobond and foreign bonds? What are the unique
Fall 2011
Master of Business Administration - MBA Semester 4 Subject Code MF0015 Subject Name International Financial Management 4 Credits
(Book ID: B1316)
Assignment Set- 2 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions.
Q.1 What do you mean by optimum capital structure? What factors affect cost of capital
across nations? Q.2 What is sub-prime lending? Explain the drivers of sub-prime lending? Explain briefly
the different exchange rate regime that is prevalent today. Q.3 What is covered interest rate arbitrage?
Assume spot rate of = $ 1.60 180 day forward rate = $ 1.56 180 day interest rate in U.K. = 4% 180 day U.S interest rate = 3% Is covered interest arbitrage by U.S investor feasible? Q.4 Q.5 Explain double taxation avoidance agreement in detail Explain American depository receipt sponsored programme and unsponsored
programme. Q.6 Explain (a) Parallel Loans (b) Back to- Back loans