Tybms Sem6 If Nov19

CC A 14 F 53 C7 C D9 CC C9
4 F 0 8 2
C5 5A4 145 5FF5 530C C75 5C8DD9C CCC C92AA2C
A 1 F C
5A 414 45F F53 30C7 75C 8D 9CC CC9 92A 2C0 0F85
F 9 2
A4 4145 5FF 530 0C75 5C8 8D9 CCC C92 2A2 C0F F85C CC5
14 FF 530 C7 C8 D9 CC 92 A2 C0F 85 C A4
41 5F 53 C 5C D CC C9 A C0 8 CC 5A 14
4 7 5
14 5FF F530 0C7 5C8 8D9 9CC C92 2A2 2C0F F85 CC 5A4 4145 5FF
5F 53 C 5C D CC C9 A C0 8 CC 5A 14 FF 53
5F F53 0C 75C 8D 9CC C9 2A 2C0 F8 5CC 5A 414 5FF 53 0C7
7 9 2 5 0
(7)
(5)
(8)
(6)
(4)
(3)
(2)
(1)
(a)
Q.1.
FF F530 0C7 5C8 8D9 CC C92 2A2 C0F F85 CC5 5A4 4145 5FF 530 C75 5C8
5 C 5 D C C A C C 1 F 5 C D Note:
67750
F5 30C 75 C8D 9C CC 92A 2C 0F8 85C C5AA41 45F F53 30C 75C C8D 9C
30 75 C8 9C CC 92 2C 0F 5C C5 4 45 F5 0C 75 8D 9C CC
Marks: 75
30 C75 C8 D9C CC 92 A2C 0F 85C C5 A4 145 FF5 30C 75 C8D 9C CC 92A

C D A 1 F C
0C 75C C8D 9C CC 92A 2C 0F8 85CC C5AA41 45F F53 30C 75C 8D 9CC CC9 92A 2C0
C 9 0 5 4
75 8D 9C C 2A 2C F8 C 5A 41 5F F5 0C 75C 8D 9C C 2A 2C F8
_____
C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
D9 CC C9 A2 C0 85 C A4 14 FF 30 C7 C8 D9 C 92 A2 0F 85 C5
CC C9 2A C0 F85 CC 5A 14 5FF 53 C7 5C D9 CC C9 A2 C0 85 CC A4
C9 2A 2C0 F8 CC 5A 414 5FF 53 0C7 5C 8D9 CC C9 2A2 C0 F85 CC 5A 14
2A 2C F8 5C 5A 41 5F 53 0C 5C 8D CC C9 2A C0 F8 CC 5A 414 5FF
2C 0F8 5C C5A 41 45F F5 0C 75C 8D 9C C 2A 2C F8 5CC 5A 41 5F 53
0F 5C C5 4 45 F5 30C 75 8D 9C CC 92A 2C 0F8 5C 5A 41 45F F5 0C
85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5 30 75
d) Dual Bond
d) Dual Bond
CC 5A 14 F 53 C7 C D9 CC 9 A2 C0 85 C A 14 FF 30 C7 C8
d) Euro Bond
5A 414 5F F53 0C7 5C 8D CC C9 2A C0 F85 CC 5A 414 5FF 53 C7 5C D9
c) Global Bond
a) Yankee Bond
a) Yankee Bond
c) Samurai Bond
c) Samurai Bond
b) Foreign Bond
41 5F F53 0C 5C 8D 9CC C9 2A 2C0 F8 CC 5A 414 5F 53 0C7 5C 8D CC
b) Bull dog Bond

d) Base Currency
b) Bull dog Bond

c) Local Currency
45 F5 0C 75 8D 9C C 2A 2C F 5C 5 41 5F F5 0C 5C 8D 9C C
a) Domestic Bond
a) Liquid Currency
FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30 75 8 9C CC 92
IMF is a firm of ______
b) Foreign Currency
53 C7 5C D9 CC C9 A2 C0 85 CC A 14 FF 530 C7 C8 D9 C 92 A2
0C 5C 8D C C 2A C F8 CC 5A 41 5F 53 C 5C D CC C9 A C0
c) Geneva Switzerland
75 8D 9C CC 92A 2C 0F8 5C 5A 41 45F F5 0C 75C 8D 9C C 2A 2C F8
the country of issue,
C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
d) 183 members countries

c) 186 members countries
b) 182 members countries
a) 190 members countries
b) New York United States

IMF is headquartered in ______
a) Washington United States
3) Use of simple calculator is allowed
c) The option has a ready market

Multiple Choice Questions (any 8):

85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5 30 75
2) Figures to the right indicate full marks.
An option at the money when _________

d) Avenue Du Mont Blanc Switzerland

FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30 75 8 9C CC 92
Page 1 of 3
The term Euro currency market refers to _____
d) the international foreign exchange market

C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
d) The strike price and the spot price are the same
1) All questions are compulsory subject to internal choice.
2C0F85CC5A4145FF530C75C8D9CCC92A
85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5 30 75
a) The countries which have adopted Euros as their country,

b) the market in which Euro is exchanged for other countries,
FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30 75 8 9C CC 92
Bond issued simultaneously in several global financial centre is _____

C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
Paper / Subject Code: 86002 / Finance:International Finance
b) The strike price is greater than the spot price, in the case of put option
a) The strike price is greater than the spot price, in the case of call option
Japanese Yen denominated bond issued in Japan domestic market is________

2A 2C F8 5C 5A 41 5F 53 0C 5C 8D CC C9 2A C0 F8 CC 5A 414 5F
US dollar denominated bond issued in US domestic market is known as ______
2C 0F8 5C C5A 41 45F F5 0C 75C 8D 9C C 2A 2C F8 5CC 5A 41 5F
0F 5C C5 4 45 F5 30C 75 8D 9C CC 92A 2C 0F8 5C 5A 41 45F F
85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5
CC 5A 14 F 53 C7 C D9 CC 9 A2 C0 85 C A 14 FF 3
c) the market where the borrowings and lending of currencies take place outside
5A 414 5F F53 0C7 5C 8D CC C9 2A C0 F85 CC 5A 414 5FF 53

41 5F F53 0C 5C 8D 9CC C9 2A 2C0 F8 CC 5A 414 5F 53 0
45 F5 0C 75 8D 9C C 2A 2C F 5C 5 41 5F F5 0C
In a quote exchange rate, the currency that is to purchase with another currency is called
Duration: 2.5 Hours
FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30
53 C7 5C D9 CC C9 A2 C0 85 CC A 14 FF 530 C7
0C 5C 8D C C 2A C F8 CC 5A 41 5F 53 C
75 8D 9C CC 92A 2C 0F8 5C 5A 41 45F F5 0C 75C
C8 9 C 92 2 0F 5C C5 4 45 F5 30 75
(08)
D9 CC C9 A2 C0 85 C A4 14 FF 30 C7 C8
CC C9 2A C0 F85 CC 5A 14 5FF 53 C7 5C
C9 2A 2C0 F8 CC 5A 414 5FF 53 0C7 5C 8D
2A 2C F8 5C 5A 41 5F 53 0C 5C 8D
2C 0F8 5C C5A 41 45F F5 0C 75C 8D 9
0F 5 C5 4 45 F 30 75 8 9C
CC A 14 F 53 C7 C D9 CC C9
4 F 0 8 2
A 1 F C
5A 414 45F F53 30C7 75C 8D 9CC CC9 92A 2C0 0F85
F 9 2
14 FF 530 C7 C8 D9 CC 92 A2 C0F 85 C A4
41 5F 53 C 5C D CC C9 A C0 8 CC 5A 14
4 7 5
5F 53 C 5C D CC C9 A C0 8 CC 5A 14 FF 53
7 9 2 5 0
(9)
(P)
(B)
(Q)
(A)
(10)
Q.2.
5 C 5 D C C A C C 1 F 5 C D
67750
30 75 C8 9C CC 92 2C 0F 5C C5 4 45 F5 0C 75 8D 9C CC
C D A 1 F C
9.
8.
7.
6.
5.
4.
3.
2.
1.
10.
C 9 0 5 4
C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
PiP
IRF
YEN
GDR
ADR
LORO
LIBOR
SWIFT
Ask rate
85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5 30 75
PPP theory
c) Specified Date
Q.1.(B) Match the following:

a) Specified Price
b) Specified Time
FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30 75 8 9C CC 92
Column “A”
d) Specified Volume
GBP in terms of CAD.

C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
1 USD = GBP 0.6530-0.6540
1 GBP = CAD 1.5898-1.5908

1 USD = CAD 1.0408-1.0418
a) All the states of Europe
 Find the inverse quote.

1USD = Rs. 64.7250 – Rs. 64.7300

j.
i.
f.
e.
c.
a.
g.
h.
d.
b.
85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5 30 75
b) All the states of European Union
The following quote is given in Mumbai

EURO is the official currency of _______
arbitrage gain if any on GBP 1 Million.

Describe the scope of International Finance.

FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30 75 8 9C CC 92
Page 2 of 3
OR
d) Only 10 of the states of European Union
c) Only 12 of the states of European Union
The following quotation is available in Toronto:

 Calculate Mid-rate, Spread and Spread %

Explain the components of Balance of Payments.
“Theirs”
C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
The following quotations are available in New York:

Selling rate
 Is this quote “Direct” or “Indirect” in Mumbai?

One Price Theory
85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5 30 75
Japanese Currency
Price Interest Point
Interbank rate offer

Interest Rate Futures

Forward contract is an agreement to buy or sell an asset on _____
FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30 75 8 9C CC 92
Column “B”
Negotiated only in America
C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
Issued in European Capital Market

85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5
Money transfer system at international level

45 F5 0C 75 8D 9C C 2A 2C F 5C 5 41 5F F5 0C
 Compare the derived GBP/CAD quote with the quote given in Toronto and find the
 From the quotes, given in New York, Calculate the cross-currency quotation for 1
FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30
53 C7 5C D9 CC C9 A2 C0 85 CC A 14 FF 530 C7
0C 5C 8D C C 2A C F8 CC 5A 41 5F 53 C
75 8D 9C CC 92A 2C 0F8 5C 5A 41 45F F5 0C 75C
C8 9 C 92 2 0F 5C C5 4 45 F5 30 75
(07)
(08)
(07)
(08)
(07)
D9 CC C9 A2 C0 85 C A4 14 FF 30 C7 C8
CC C9 2A C0 F85 CC 5A 14 5FF 53 C7 5C
C9 2A 2C0 F8 CC 5A 414 5FF 53 0C7 5C 8D
2A 2C F8 5C 5A 41 5F 53 0C 5C 8D
2C 0F8 5C C5A 41 45F F5 0C 75C 8D 9
0F 5 C5 4 45 F 30 75 8 9C
CC A 14 F 53 C7 C D9 CC C9
4 F 0 8 2
A 1 F C
5A 414 45F F53 30C7 75C 8D 9CC CC9 92A 2C0 0F85
F 9 2
14 FF 530 C7 C8 D9 CC 92 A2 C0F 85 C A4
41 5F 53 C 5C D CC C9 A C0 8 CC 5A 14
4 7 5
5F 53 C 5C D CC C9 A C0 8 CC 5A 14 FF 53
7 9 2 5 0
(P)
(P)
(B)
(B)
(B)
(A)
(Q)
(A)
(Q)
(A)
Q.5.
Q.4.
Q.3.
5 C 5 D C C A C C 1 F 5 C D
67750
30 75 C8 9C CC 92 2C 0F 5C C5 4 45 F5 0C 75 8D 9C CC
C D A 1 F C
C 9 0 5 4
Year
C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
5) Hedging
3. GBP
1. USD
2. EUR
against INR.
1) FDI Vs. FPI
4) Fisher Effect
Currency
85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5 30 75
Profit After Tax

FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30 75 8 9C CC 92
53 C7 5C D9 CC C9 A2 C0 85 CC A 14 FF 530 C7 C8 D9 C 92 A2 Spot EUR/JPY 119.3525
1
0.6750, 0.5921 and 0.5194.

C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
1 month forward rate 119.3625
Describe the features of FEMA.
91.1600
81.1850
65.1450
1,00,000
Spot Rate
Write Short Notes on (any three)
2) Participants of Foreign Exchange

3 month forward points are: 300/500
1 month forward points are: 100/150

6 months forward points are: 500/800
2
85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5 30 75
3) Fixed Vs. Flexible Exchange Rate System

FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30 75 8 9C CC 92
Page 3 of 3
What are currency options? Explain its types?
OR
OR
OR
1,00,000
What are Tax Havens? Explain their advantages.

Calculate 1 Month AFM and interpret the results.

State the differences between futures and options.
91.8500
81.2350
65.2550
Calculate1, 3 and 6 months outright forward quote
C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
3 months
3
Discuss the elements of International Equity Market.
Following is the GBP/ USD spot rate: 1.2192/1.2290
Explain the benefits of doing business internationally.

forward rate
____________________________
80,000
2,00,000. Forecast for annual income after tax is as follows:

85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5 30 75
4
FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30 75 8 9C CC 92
80,000
Interest rate
5.00 % p.a.
4.50 % p.a.
4.00 % p.a.
C8 9 C 92 2 0F 5C C5 4 45 F5 30 75 8 9C CC 92 2C 0F 5C
5
Hinduja Ltd. is considering investing in a project requiring a capital outlay of Rs.
85 C A4 145 FF 30 75 C8 9 CC 92 2 0F 5C C5 4 45 F5
The following data is available to decide on the best alternative for borrowing INR 5
40,000
Million for a temporary period of three months on a risk free basis. Exchange rates are

45 F5 0C 75 8D 9C C 2A 2C F 5C 5 41 5F F5 0C
Depreciation is 20% on Straight Line basis. Evaluate the project on the basis of NPV
project or not. The present value of Re. 1 at 14% discounting rate are 0.8772, 0.7695,
taking 14% discounting factor and advise whether Hinduja Ltd. should invest in the
FF 30 7 C8 9 C 92 2 0F 85 C5 A4 45 F 30
53 C7 5C D9 CC C9 A2 C0 85 CC A 14 FF 530 C7
0C 5C 8D C C 2A C F8 CC 5A 41 5F 53 C
75 8D 9C CC 92A 2C 0F8 5C 5A 41 45F F5 0C 75C
C8 9 C 92 2 0F 5C C5 4 45 F5 30 75
(15)
(07)
(08)
(07)
(08)
(07)
(08)
(07)
(08)
(07)
(08)
D9 CC C9 A2 C0 85 C A4 14 FF 30 C7 C8
CC C9 2A C0 F85 CC 5A 14 5FF 53 C7 5C
C9 2A 2C0 F8 CC 5A 414 5FF 53 0C7 5C 8D
2A 2C F8 5C 5A 41 5F 53 0C 5C 8D
2C 0F8 5C C5A 41 45F F5 0C 75C 8D 9
0F 5 C5 4 45 F 30 75 8 9C

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CC A 14 F 53 C7 C D9 CC C9

30 C75 C8 D9C CC 92 A2C 0F 85C C5 A4 145 FF5 30C 75 C8D 9C CC 92A

b) Bull dog Bond

b) Bull dog Bond

IMF is a firm of ______

d) 183 members countries

b) New York United States

c) The option has a ready market

0F 5C C5 4 45 F5 30C 75 8D 9C CC 92A 2C 0F8 5C 5A 41 45F F5 0C

An option at the money when _________

d) Avenue Du Mont Blanc Switzerland

75 8D 9C CC 92A 2C 0F8 5C 5A 41 45F F5 0C 75C 8D 9C C 2A 2C F8

2C 0F8 5C C5A 41 45F F5 0C 75C 8D 9C C 2A 2C F8 5CC 5A 41 5F 53

41 5F F53 0C 5C 8D 9CC C9 2A 2C0 F8 CC 5A 414 5F 53 0C7 5C 8D CC

75 8D 9C CC 92A 2C 0F8 5C 5A 41 45F F5 0C 75C 8D 9C C 2A 2C F8

Japanese Yen denominated bond issued in Japan domestic market is________

5A 414 5F F53 0C7 5C 8D CC C9 2A C0 F85 CC 5A 414 5FF 53

Q.1.(B) Match the following:

GBP in terms of CAD.

1 USD = GBP 0.6530-0.6540

1 GBP = CAD 1.5898-1.5908

 Find the inverse quote.

1USD = Rs. 64.7250 – Rs. 64.7300

The following quote is given in Mumbai

arbitrage gain if any on GBP 1 Million.

Describe the scope of International Finance.

The following quotation is available in Toronto:

 Calculate Mid-rate, Spread and Spread %

The following quotations are available in New York:

 Is this quote “Direct” or “Indirect” in Mumbai?

Interbank rate offer

5A 414 5F F53 0C7 5C 8D CC C9 2A C0 F85 CC 5A 414 5FF 53 C7 5C D9

C9 2A 2C0 F8 CC 5A 414 5FF 53 0C7 5C 8D9 CC C9 2A2 C0 F85 CC 5A 14

41 5F F53 0C 5C 8D 9CC C9 2A 2C0 F8 CC 5A 414 5F 53 0

1) FDI Vs. FPI

Profit After Tax

0.6750, 0.5921 and 0.5194.

Describe the features of FEMA.

Write Short Notes on (any three)

2) Participants of Foreign Exchange

0F 5C C5 4 45 F5 30C 75 8D 9C CC 92A 2C 0F8 5C 5A 41 45F F5 0C

3) Fixed Vs. Flexible Exchange Rate System

What are Tax Havens? Explain their advantages.

75 8D 9C CC 92A 2C 0F8 5C 5A 41 45F F5 0C 75C 8D 9C C 2A 2C F8

Explain the benefits of doing business internationally.

2,00,000. Forecast for annual income after tax is as follows:

41 5F F53 0C 5C 8D 9CC C9 2A 2C0 F8 CC 5A 414 5F 53 0

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