Total No. of Questions 08] [Total No. of Pages 02
EXECUTIVE M.B.A. DEGREE EXAMINATION, MAY 2018
First and Second Years
B-FINANCIAL MANAGMENT
Financial Markets Derivatives
Time 3 Hours Maximum Marks :70
SECTION A
Answer any three questions. x 5 15)
Q1) Call money market.
SEBI.
Primary market.
Hedging.
Options.
Money lenders.
SECTION B
Answer any three questions. x 15 45)
Q2) Briefly explain the money market instruments in India.
Q3) Explain the structure of capital market in India.
Q4) Describe the role of SEBI in regulating primary market.
Q5) Differentiate between futures and forward contracts.
Q6) Explain the properties of stock option prices.
Q7) What are interest rate derivative securities? Explain.
SECTION C
(Compulsory)
Q8) Case Study
Consider the following data:
Stock price Rs. 50.
Months to expiration 3 months.
Risk-free rate of Interest 10% p.a.
Standard deviation of stock 40%.
Exercise Price Rs.55.
Option type European Call.
Calculate the value of call option as per block scholes model.