SNS COLLEGE OF TECHNOLOGY

(An Autonomous Institution, Affiliated to Anna University)

Coimbatore - 35
Reg No:

M.B.A. DEGREE END SEMESTER EXAMINATION, MAY / JUNE 2015

THIRD SEMESTER
BA721 – FINANCIAL DERIVATIVES
Regulations 2013
TIME : 3 HOURS MAX. MARKS : 100
ANSWER ALL QUESTIONS
PART – A (10 X 2 = 20 MARKS)
1. Define derivative 2

2. What is future contract? 2

3. What is mark-to market? 2

4. Write a brief note on interest rate future contract. 2

5. Define option 2

6. What is stock index arbitrage? 2

7. What is meant by swaption? 2

8. Write a note on currency swap. 2

9. What is foreign exchange risk? 2

10. Define margin 2

PART – B (5 X4 = 20 MARKS)

11. What are the types of orders allowed for trading in derivatives? 4

12. List out the features of forward contract. 4

13. Write a brief note on American and European option. 4

14. Briefly discuss any two types of financial swaps. 4

15. Explain the nature of derivatives trading. 4

 PART – C (5 X 12 = 60 MARKS)

Question no. 16 is compulsory

16. A one year call option with a exercise price of Rs.60 is available at a 12

premium of Rs.6. You can also buy a one-year put with a exercise price of

Rs 3. If you set up an portfolio of a put and a call, what will be your pay-off,

If the share price after on e year is (i) Rs.58 (ii)Rs.45 or Rs.75?

17. a Discuss the types of derivatives in detail 12

(OR)

b Differentiate forward Vs future contract 12

18. a Describe the functions of future market. 12

(OR)

b What are the various specifications in future contract? Discuss. 12

19. a Describe in detail the features of swaps. 12

(OR)

b Explain the types of financial swaps. 12

20. a Discuss the derivatives regulations in Indian stock market. 12

(OR)

b Explain the instruments of regulation used by different regulatory 12

authorities and government bodies in derivatives.

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