University/board: Devi Ahilya Vishwavidyalaya DAVV
Course: MBA
Semester : Four, 04, IV
Subject : FINANCIAL RISK AND DERIVATIVES
Year : 2007
DAVV University Question Papers June - July 2007
Master of Business Administration (MBA) Examination
(Full time) IV Semester
FINANCIAL RISK AND DERIVATIVES
Time 3 Hours] [Max. Marks 90
Note : Attempt any three questions in Section A consisting of 22 marks each. Section B is compulsory consisting of 24 marks.
Section A
1. What do you mean by Financial Risk ? What are different types of financial risks ? Discuss the risk management strategies.
2. Distinguish between call option and put option. Discuss how values of call option are determined.
3. What is Stock Index Futures ? How can risk be hedged under stock index futures ?
4. Discuss the nature of Currency swaps. Explain with the help fo example currency swap transaction.
Section B
1. Explain Index Option and Put Call Parity.
2. In May beginning you decide that shares in Futres Ltd. will rise over the next month or so. The current
price is Rs. 200 and you hope that the shares will be at Rs. 250 by the end of July. Give your opinion and explanation when :
(i) no option is traded.
(ii) option is traded.
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