Exam Details
| Subject | international financial management | |
| Paper | ||
| Exam / Course | m.b.a. in d - international management | |
| Department | ||
| Organization | acharya nagarjuna university-distance education | |
| Position | ||
| Exam Date | May, 2018 | |
| City, State | new delhi, new delhi |
Question Paper
Total No. of Questions 08] [Total No. of Pages 02
M.B.A. DEGREE EXAMINATION, MAY 2018
Third Year
D-INTERNATIONAL MANAGEMENT
International Financial Management (Optional)
Time 3 Hours Maximum Marks :70
SECTION A
Answer any three questions. x 5 15)
Q1) Finance function in MNCs.
Gold standard.
Determination of spot exchange rate.
International cash management.
FEDAI
NPV
SECTION B
Answer any three questions. x 15 45)
Q2) Explain the monetary approach to BOP adjustments.
Q3) Do you agree that floating exchange rate regime is a better option than the fixed
exchange rate regime? Explain.
Q4) What is accounting exposure? Explain various methods of translation in detail.
Q5) What do you understand by transaction exposure? How it arise?
Q6) What should be the shape of optimal receivables policy?
Q7) Explain the different modes of payment in international trade.
SECTION C
(Compulsory)
Q8) Case Study:
French importer has bought equipment from a US firm for US$1 million on 1
March in the current year to be paid for in 3 months. The importer fears an
appreciation of the US dollar. He decides to cover himself in the "Option
market". The information as follow:
Exchange Rate: FFr 5.00/US$ or US$0.20/FFr
Strike price: FFr 5.05/US$
Maturity date: 1st June
Premium: 3 Percent
What type of option is involved? Explain how buyer will hedge his risk under
"options contract" in various situations. i.e. under in-the-money, at-the-money
and out-of-the money.
M.B.A. DEGREE EXAMINATION, MAY 2018
Third Year
D-INTERNATIONAL MANAGEMENT
International Financial Management (Optional)
Time 3 Hours Maximum Marks :70
SECTION A
Answer any three questions. x 5 15)
Q1) Finance function in MNCs.
Gold standard.
Determination of spot exchange rate.
International cash management.
FEDAI
NPV
SECTION B
Answer any three questions. x 15 45)
Q2) Explain the monetary approach to BOP adjustments.
Q3) Do you agree that floating exchange rate regime is a better option than the fixed
exchange rate regime? Explain.
Q4) What is accounting exposure? Explain various methods of translation in detail.
Q5) What do you understand by transaction exposure? How it arise?
Q6) What should be the shape of optimal receivables policy?
Q7) Explain the different modes of payment in international trade.
SECTION C
(Compulsory)
Q8) Case Study:
French importer has bought equipment from a US firm for US$1 million on 1
March in the current year to be paid for in 3 months. The importer fears an
appreciation of the US dollar. He decides to cover himself in the "Option
market". The information as follow:
Exchange Rate: FFr 5.00/US$ or US$0.20/FFr
Strike price: FFr 5.05/US$
Maturity date: 1st June
Premium: 3 Percent
What type of option is involved? Explain how buyer will hedge his risk under
"options contract" in various situations. i.e. under in-the-money, at-the-money
and out-of-the money.