Q.1 (a) There are so many types of risk associated with the business – elaborate the sentence with suitable examples.
(b) What is Derivative? Define various types of instruments of it.
Q.2 Distinguish between forward contract & future contract.
Q.3 (a) Explain the various types of option:
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Based on activity
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Based on exercise
(b) Define intrinsic value and time value of an option with suitable example
Q.4 Define the currency future. How a person can do “Arbitrage” using currency future
Q.5 (a) What is currency Swap? Classify the different types of currency rate Swaps
(b) What are the positions which can be taken by an investor in the options market?’
Q.6 (a) What are T-bill futures? Classify the hedging strategies with T-bill futures.
(b) What is “Plain Vanilla” swap? Classify the different types of Interest rate Swaps
Q.7 a) Define Risk and types of Risks.
b) Differentiate between Peril and Hazard and give an example of each.