Hall Ticket No Question Paper Code: CMB420
INSTITUTE OF AERONAUTICAL ENGINEERING
(Autonomous)
MBA IV Semester End Examinations (Regular) May/June, 2018
Regulation: IARE-R16
FINANCIAL MODELING
Time: 3 Hours Max Marks: 70
Answer ONE Question from each Unit
All Questions Carry Equal Marks
All parts of the question must be answered in one place only
UNIT I
1. Calculate the following using appropriate financial functions of excel:
i. A has invested US $100 in 2016. The payment has been made yearly. The interest rate is
10% p.a. What would be the FV in 2019?
ii. M has invested US $100 at the end of 2016. It is expected that the interest rate will change
every year. In 2017, 2018 2019, the interest rates would be respectively.
What would be the FV in 2019?
Explain different types of form controls provided in excel.
2. List and briefly explain different attributes of good excel model.
Write the syntax of DMAX function and explain different arguments of this function by taking
an example.
UNIT II
3. Briefly discuss the benefits and limitations of simulation model.
Explain the process of setting up data validation.
4. Discuss the steps involved in creating two variable data sets
Explain how excel supports the business analyst in developing models in finance using simulation.

UNIT III
5. Briefly discuss the process of modeling the statement of cash flows.
Give the comparison between present value and net present value.
6. Illustrate how to calculate the price of a call option written on a stock whose current price S
50, when the exercise price X 45, the annualized interest rate r and 30%. The
option has T 0.75 years to exercise. All three of the parameters T r and are assumed to be
in annual terms.
Give the differences between the income statement and the cash flow statement.
UNIT IV
7. Illustrate the usage of using SumIF, CountIF and AverageIF functions in excel by taking an
example for each.
Briefly discuss Black and Scholes solution to the optimization problem.
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8. Explain different prepositions for efficient portfolio nomenclature.
Briefly discuss common methods for debugging Excel VBA code.
UNIT V
9. List and briefly discuss different VBA debugging tools.
Explain different steps in creating a financial model using excel and VBA.
10. What is a macro recorder? Briefly discuss the uses and limitations of a macro recorder.
List the important rules of naming variables in VBA.
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