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Quiz Test-2 Financial Derivatives (KMB-FM-05) : MBA (SEM 4) (Groups 41,42)

This document appears to be a quiz for an MBA financial derivatives course. It contains 5 questions testing students' understanding of key concepts related to derivatives. Question 1 (5 marks) asks students to discuss the definition of a swap contract as an exchange of pre-agreed cash flows between two parties. Question 2 (5 marks) asks students to identify and explore the most common types of swap contracts. The remaining questions cover short definitions related to counterparty risk, forward rate agreements, commodity swaps, equity swaps, and LIBOR (1 mark each), explaining the process of currency and interest rate swaps (5 marks), and discussing the Black-Scholes model for pricing options (5 marks).

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Vivek Singh Rana
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121 views1 page

Quiz Test-2 Financial Derivatives (KMB-FM-05) : MBA (SEM 4) (Groups 41,42)

This document appears to be a quiz for an MBA financial derivatives course. It contains 5 questions testing students' understanding of key concepts related to derivatives. Question 1 (5 marks) asks students to discuss the definition of a swap contract as an exchange of pre-agreed cash flows between two parties. Question 2 (5 marks) asks students to identify and explore the most common types of swap contracts. The remaining questions cover short definitions related to counterparty risk, forward rate agreements, commodity swaps, equity swaps, and LIBOR (1 mark each), explaining the process of currency and interest rate swaps (5 marks), and discussing the Black-Scholes model for pricing options (5 marks).

Uploaded by

Vivek Singh Rana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Academic/26

Refer/WI/ACAD/18

SHRI RAMSWAROOP MEMORIAL GROUP OF PROFESSIONAL COLLEGES


MBA [SEM 4] (Groups 41,42)
QUIZ TEST-2
(Session: 2019-20)
FINANCIAL DERIVATIVES
Time: 1 hour (KMB-FM-05) Marks: 30

Roll No.
(To
be filled by the Student)
Note: Attempt all Questions

Part – A
(Questions from Tutorial Sheet-4)

Marks C.O. B.L.


1. “A swap is a derivative contract between two parties that involves the exchange of 5 4 2
pre-agreed cash flows of two financial instruments.” Discuss this statement.
(T4 Ques. 1 (5 marks) (250-300 words)
2. Identify and explore the most common types of swap contracts. 5 4 1
(T4 Ques.2 (5 marks) (250-300 words)

Part – B

3. Short Questions: (25-30 words) Marks C.O. B.L.


a) State the concept counterparty risk. 1 3 1
b) State the concept forward Rate Agreement. 1 3 1
c) What is a commodity swap? 1 3 2
d) What is Equity swap? 1 3 2
e) State the concept of LIBOR. 1 3 2
4. Explain the process of executing Currency Swap and Interest rate swap? 5 3 2
5. “The Black–Scholes formula calculates the price of European put and call 5 4 2
options”. Discuss this statement and assumptions of this model.

__________X__________

KMB-FM-05/Mr. Vivek Singh Rana Page-1


Date: 11/05/2020

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