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APRIL 2016 65185/KDA4D/

KDF4D

Time : Three hours Maximum : 75 marks

PART A — (10  1 = 10 marks)

Answer any TEN questions.

1. What do you know about futures market?

2. Write a short note on strike price.

3. What are called as derivatives?

4. What is meant by return on investment?

5. What is meant by forward market?

6. What do you know about foreign currency futures?

7. Define swap.

8. What do you know about options?

9. What do you know about derivative exposure?

10. What do you know about management of

derivatives?

11. What do you know about credit derivatives?

12. What do you know about stock index?

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PART B — (5 × 5 = 25 marks)

Answer any FIVE questions.

13. Describe the theories of forward contracts.

14. Describe the significance of financial derivatives.

15. Briefly examine about foreign currency forwards.

16. Describe the features of swap markets.

17. Describe the management of derivatives exposure.

18. Give a brief account of advanced financial

derivatives.

19. Describe the significance of financial swaps.

PART C — (4 × 10 = 40 marks)

Answer any FOUR questions.

20. Critically examine the pricing strategies that will

be adopted in forward contracts.

21. Give a detailed account of financial derivatives

market in India.

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22. Differentiate stock index, short term interest rate

and long term interest rate futures.

23. Discuss the need for trading with options.

24. List out the accounting treatment of derivative

transactions.

25. Give a detailed account of hedging with options.

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