VIGNAN’S INSTITUTE OF INFORMATION TECHNOLOGY (A)

Name of the Subject : FINANCIAL RISK MANAGEMENT

Subject Code : 3099192253
Name of the Faculty: Srinu Madem Designation: Asst. Prof.
EMAIL : srinu.mbafin@gmail.com Phone No: 9440991310 Experience: 13 Years
2020 ADMITTED BATCH MBA (VR19) II Year- II Semester
QUESTION BANK FOR MID-2 EXAMS

UNIT –III

Level
of
Marks
Q. No Essay type Questions Bloom CO
(10 M)
Taxon
omy
1 What do you understand by hedging with suitable examples? L2 CO-2 10 M

2 Differentiate between hedging and Speculation L1 CO-2 10 M

3 What do you understand by Options and Options Market? L2 CO-2 10 M

Explain its significance in financial market?
4A What is the role of derivative securities to manage risk and L3 CO-2 10 M
exploit opportunities to enhance returns?

4B What is the difference between cash and physical delivery for L3 CO-2 10 M
future contract?

UNIT –IV

Level
of
Marks
Q. No Essay type Questions Bloom CO
(10 M)
Taxon
omy
1 Why does a bank become economically insolvent, if its net L2 CO-3 10 M
worth turns negative?

2 Who are the players and participants in the derivative market? L3 CO-3 10 M

3 Elucidate RBI guidelines for asset liability management L2 CO-3 10 M

4 Explain the overview of Risk management in Banks and L3 CO-3 10 M

regulatory framework
5 Explain the organizational structure for Market and Credit Risk L2 CO-3 10 M
 6 Discuss the role of SEBI in risk management in securities L3 CO-3 10 M
market in India
7 Discuss the role of NHB in Housing Finance market in India L3 CO-3 10 M
8 What is Bank of International Settlement and explain its L3 CO-3 10 M
objectives and scope
9 What are the objectives of SEBI and explain L3 CO-3 10 M
10 What are the objectives of NHB and explain L3 CO-3 10 M

UNIT –V

Level
of
Marks
Q. No Essay type Questions Bloom CO
(10 M)
Taxon
omy
1 Explain the advanced Bond concepts of Risk Management L3 CO-4 10 M

2 Discuss about Black-Scholes Model of option pricing L3 CO-4 10 M

3 Explain Moody’s KMV portfolio manager L2 CO-4 10 M

4 Discuss the Future scenario of risk management in derivates L3 CO-4 10 M

5 Explain 1) Bond Duration 2) Yield to Maturity 3) Current Yield L3 CO-4 10 M

6 How do you calculate Value at Risk (VaR) using Manta Carlo L1 CO-4 10 M
Simulation approach?

7 Discuss the assumptions of Black-Scholes Model L1 CO-4 5M

8 Explain all the variables in Black-Scholes Model L2 CO-4 5M

9 Explain the advantages and Disadvantages of Black-Scholes Model L2 CO-4 5M
10 Describe the participants of Derivatives market in India L2 CO-4 5M

FACULTY NAME & SIGN HOD-MBA