if the due date is a public holiday, what will be the due date of

1
the bill.
which of the following is not a characteristic feature of venture
2
capital firm?
3 the market for short-term loan is known as______
financial intermediaries provide services on the basis of non
4
fund activities , also called___
5 functions of financial services excludes____________
a direct lease, a sale and lease back , and a leveraged lease are
6
all examples of_______
the sale of a mortagage portfolio by setting up mortgage pass-
7
through securities is an example of
a_________is an agreement to exchange an asset, for cash, at a
8
pre-determined future date specified today.
9 mutual funds are allowed to borrow
10 _____is basically a savings and investment corporation
11 an aggrieved unit-holder of a mutual fund can sue
12 early stage financing includes

a high P/E multiple of a fund in comparison to average market

13
multiple could be of

14 _______is needed for developing a product in the initial stages

15 under which circumstances drawer and payee is same person.

16 high risk is an outstanding feature of__________
the private sector was granted premission to enter the mutual
17
fund industry in
____scheme enable the society to enjoy the benefits of
18
insurance at reduced cost.

19 one advantage of a financial lease is that:

20 insurance is a_______
________offers insurance cover on the life of the key
21 personnel in an organisation to protect it from the loss arising
out of his death, absence of exit.
______is a form of financing of receivables pertaining to
22
international trade.
the consideration which the lessee pays to the lessor for the
23
lease transaction is the
 discounting of bills of exchange is an attractive______based
24
financial services provided by the finance companies.
25 the ______has to manage the post issue activities
A form of direct short term finance issued by large, credit
26
worthy companies is called a ______
27 Certificate of Deposits (CDs) are issued by
how many merchant banker required if company issue lot size
28
is <Rs. 50Cr.
____________is a financial intermediary who helps to
29 mobilize and transfer capital from those who possess it to
those who need it.
which of the following members would you not find in the
30
secondary Market?

under hire purchase system, if instalment is not paid the hire

1
vendor has right to_____
_______is a long term risk capital to finance high technology
2 projects which involve risk but at same time has strong
potential for growth
______refers to transaction in which two parties agree to sell
3
and repurchase the same security.

4 the main instrument of organised money market are

5 a drawer in the bill of exchange can also be a
the private sector was granted premission to enter the mutual
6
fund industry in
7 when the bill are to be produced to notary public
8 under hire purchase system, who has the right of sell
9 listing of shares at a stock exchange ensures
_____scheme enable the society to enjoy the benefits of
10
insurance at reduced cost.
a market in which different currencies are bought and sold
11
under regulated arrangement is

12 _______is needed for developing a product in the initial stages

13 free period called
14 ______is an investment in a start-up business
15 agents are compensated by mutual funds
16 what is CRR
 how many merchant banker required if company issue lot size
17
is <Rs. 50Cr.

18 under which circumstances drawer and payee is same person.

19 one advantage of a financial lease is that:

____capital is needed for product development and initial

20
marketing
the most important reason for an investor to prefer a bank
21
deposit to mutual fund is
a______is a plastic card embedded with the computer chip that
22
stores and transact data between users.
________offers insurance cover on the life of the key
23 personnel in an organisation to protect it from the loss arising
out of his death, absence of exit.
it is normally true that, the longer the time to maturity of a
24
government treasury bill____
25 an aggrieved unit-holder of a mutual fund can sue
26 ______is a method of renting assets
27 who is the apex body which control all financial institutions
plastic card implanted with computer chip to the data is known
28
as______

29 In case of leasing, advantage to lessor are

30 Mutual fund is not

1 ADR Full form

2 GDR full form
3 financial market regulate by
4 treasury bill is a
5 stock exchange konse h
6 private bank konsa h
7 general insurance company konsi nai h
8 when is LIC was formed
9 ULIP full form
10 mutual fund holder kon hota h
11 which of the following is a risky fund
12 which of the following is not covered in lease
13 when is startup capital provided
14 venture capital kb provide krte h
15 venture capital firm nai h
16 credit rating agency nai h
17 IPO post activity kon dekhta h
18 IPO and SPO are
19 which of the following are primarily claimant
which of the following are not advantage in lease to lessor
which of the following is not a NBFC
mezzanine financing is related to
is the sources of working capital finance for industry
TDICI is now known as
in India, commercial banks
which of the following mutual fund scheme has lock in period
Nifty 50 is an index of
lead manager in an IPO should be
which of the following is not a stock broker
which of the following is an oldest stock exchange
sensex is an index of
stock exchange is a part of
operating lease are also known as
NSDL and CDSL are
preferential issue is a type of
which of the following is not role of NBFC
depository participants act as agent of
which of the following is a fee based service
headquarters of new India insurance co situated in
balance fund has a portfolio consisting of
which of the following is not a commercial policy
IRDA stands for
previous day

funding just one or a small number of

firms
money market
fee based activity
Collection of tax
"off balancesheet" methods of financing

Securitization

forward contract
only to meet redumption demands
UTI
the trustees
seed capital, start-up, second round
financing

Growth fund

seed capital

when the drawer discounted the bill with

banker
venture capital
1992

social insurance

it provides a way to indirectly deprecciate

land
contract

keyman insurance

forfaiting

lease rental
fund
merchant bankers
commercial papers
corporate
two

venture capital or merchant banker

underwriters

answers
repossession of goods

venture capital

re purchase

call money, commercial bills, treasury

bills, certificate of deposits
payee
1992
at the time of dishonour of the bill
hire vendor
high liquidity
social insurance

foreign exchange market

seed capital
grace period
venture capital
through commission
cash reserve ratio4
one

when the drawer discounted the bill with

banker
it provides a way to indirectly deprecciate
land

second round financing

the creditworthiness of the bank

smart card

keyman insurance

the lower the discount rate

the trustees
lease
Reserve bank of India
smart card

tax shield, full security and high

profitability
a portfolio of stocks, bond and other
securities

American depository receipt

Global depository receipt
SEBI
government securities
Nifty and sensex
Kotak Mahindra Bank
IFFCO, LIC, National insurance co
1870
unit linked insurance plan
unit holder
growth fund
factor
at early stage
in early stage, high growth potential,
startup companies
except ICRA, CARE, CRISIL
merchant banker
primary fund

ICICI

50 companies

30 companies

hire purchase
depositories

debt and equity both

insurance regulatory and developing

authority
options

venture capital. hedge finance, merchant banker, hire purchaser

certificate of deposit, re-purchase, commercial bills, treasury bills

guranteed returns, long term capital appreciation, low risk, high liquidity

financial market, money market, capital market

normal period,zero period, grace period, none of these

mutual fund, venture capital working capital, factoring
seed capital, start-up capital, second round capital, working apital

that the bank offers a guarantee, the creditworthiness of the bank, because the bank does not invest in securities, inve

credit card, debit card, smart card, EMI card

RBI,Ministry of finance, GOI, SEBI

credit card, ATM card, smart card, SME card
 Mr. A purchase a stock in the stock market. his
1
holding period return depends on the
the security market line describes the expected
2
return for
the debate over whether markets are efficient will
3
probably never be resolved because of
security C has expected return of 12% and standard
deviation of 20%. Security D has expected return of
4 15% and SD of 27%. If the two securities have a
correlation coefficient of 0.7, what is their
covariance?
which of the following is not an assumption of
5
technical analysis?
A company can benefit from economies of scale in
6
relation to
which statement about portfolio diversification is
7
correct?
the_______measures the reward to volatility trade-
8 off by dividing the average portfolio excess return by
the standard deviation of returns
a long term movement of prices, lasting from several
9
months to years is called_____
financial securities with a maturity of less than a year
10
from their original issue due is sold in the
trend analysis of net profit margin and leverage
11
ratios help in identifying
in____, the supply of scrip is greater than the
12
demand and a further rise in price is prevented.
a manager who uses the mean-variance theory to
13
construct an optimal portfolio will satisfy_______
14 the underwriter has to take up
a statistic that measures how the returns of two risky
15
assets move together is

an active portfolio manager faces a tradeoff between

___. I using the sharpe measure. II. sing mean-
16 variance analysis. III exploiting perceived security
mispricings. IV. holding too much of the risk free
asset. V letting a few stocks dominate the portfolio.

17 markowitz model is used under:

18 in an efficient market,_______
the first stock exchange in India was established in
19
which city in 1875?
20 the stock above the security market line is
suppose two portfolios have the same average
return, the same standard deviation of returns, but
21 portfolio X has a higher beta than portfolio Y.
According to the Sharpe measure, the performances
of portfolio X
the unsystematic risk as explained by the single
22
index is equal to
if interest rates decrease, business investment
23 expenditures are likely to_______and consumer
durable expenditures are likely to_______.
 In the active approach the investor continuously
24
studies___________
Supply-side economists wishing to stimulate the
25
economy are most likely to recommend_______
26 as the debt ratio increases_______
when the economy is booming one will find
27
increased levels of expenditure on
28 stock exchange
29 the investors should have knowledge about
inter day price band fixes the price range for a scrip
30 for a trading session. Inter-week price band controls
the

the unsystematic risk as explained by the single

1
index is equal to
2 market indicators are employed in
an investor is having a portfolio with the combination
3
of stock and bond in the ratio of 75:25. he is
which of the following lines depicts the tradeoff
4
between risk and return for individual securities?
5 in an efficient market,_______
6 in a limited company
7 markowitz approach has root in

8 the market risk, beta, of a security is equal to

9 which one is incorrect statement? to get listed

10 interest rate risk occurs when
a comprehensive legal framework was provided by
11
the SEBI Act passed in the year
one of the following factors leads the activity of stock
12
market.
13 the determinants rate of return is/are
a statistic that measures how the returns of two risky
14
assets move together is
15 markowitz model is used under:
16 Buy BRC100 shares around Rs. 60.? This order is a
Ideally, clients would like to invest with the portfolio
17
manager who has______
Which of the following is/are limitations of employing
18
leading indicators?
if interest rates decrease, business investment
19 expenditures are likely to_______and consumer
durable expenditures are likely to_______.
consider the data risk-free rate 6.5%, beta 1.24 and
20 market return 11.5%. the expected return for the
above security will be
21 Purchase ABC co. shares at Rs. 200?.this order is a
22 institutional investor___________
which group contains the companies with large
23 outstanding shares, good track record and large
volume of business in the secondary market
a manager who uses the mean-variance theory to
24
construct an optimal portfolio will satisfy_______
the characteristic line establishes the relationship
25
between
SEBI has made it mandatory for the companies to
26
disclose
27 the sensex has_______
In active approach the investor continuously
28
studies_________
the first stock exchange in India was established in
29
which city in 1875?
to frame the investment policy, the investor should
30
have
All of the above(Purchase price of the stock, selling
price of the stock, dividend paid to the stock)
All portfolios and assets
all of the above ( the lucky event issue, the
magnitude issue, the selection bias issue)

0.0378

supply and demand are governed by purely irrational

factors
All of the above
proper diversification can reduce or eliminate
systematic risk

sharpe measure

primary trend

money market

business risk and financial risk

resistance level

all investors regardless of their level of risk aversion

the unsubscribed part of the agreed portion
correlation and covariance

III and V

modern approach
All of the above
bombay(mumbai)
underpriced

is the same as the performance of portfolio Y

unexplained variance of the index

decrease, decrease
All of the above

a decrease in the tax rate

more assets are debt financed and the ratio of debt
to equity increases
All of the above
All of the above
All of the above

weekly price movement

unexplained variance of the index

All of the above

risk taker

security market line

All of the above
the shareholder will pay debt upto their share in the
capital
analysing risk and return related to the stock
the covariance between the security's return and
market return divided by variance of the market's
returns
none of these
All of the above
1992

per capita income

All of the above
correlation and covariance
modern approach
discreationery order

the highest sharpe measure

some of the turns prove to be misleading and
constraint signal

decrease, decrease

12.70%

limit order
All of the above

group A

all investors regardless of their level of risk aversion

return on security and return on the market

quartetly report and annual report

30 stocks
bombay(mumbai)

All of the above

 the yeild on treasury bill with a maturity is classified as
1
risk free rate and must be equal to
you write one AT&T february 50 put for a premium of $5.
2 Ignoring transactions costs, what is the breakeven price of
this position?
Buy in and selling call or put option with the same strike
3
price but different expiration dates is called

which of the following statement is/are incorrect? 1) call

option with lower strike prices are more valuable. 2) if the
current stock price is above the strike price of a call, the
4
option has some intrinsic value 3) put option with lower
strike prices are more valuable 4) if the strike price is equal
to the current stock price, an option is said to be at money

if the previous fixed date payment date and forthcoming

5 fixed day payment date are 04/09/2014 and 04/03/2015
then fixed day count fraction is calculated as
if A and B enter the swap contract, the effective interest A
6
woue paying each year
consider a one-year maturity call option and one year put
option on the same stock, both with striking price $45. if
7
the risk-free rate is 4%, the stock price is $48, and the put
sell for $1.50, what should be the price of the call?
8 Speculators in currency futures markets are:
which of the following is the part of the risk management
9
process?
in which option does the buyer get the right to buy the
10
underlying asset any time during the contract period?

11 A covered call position is

12 a protective put strategy is

a swap quote of LIBOR/fixed 5 year swap at 85/95 over 5

13
year treasury by a bank means that
14 trading in "exotic options" takes place
according to the black scholes model, the short term seller
15
receive today price
if the transaction costs are ignored, simultaneous sale of a
16 call and purchase of put at same strike price and expiry
gives a pay-off profile identical to
 according to a survey by Bank of America, the type of
17 foreign exchange risk most often hedged by firms is
______
which of the following is not an assumption of black-
18
scholes model?
an investor wrote a naked call option. the premium was Rs.
2.50per share and the market price and the exercise price of
19 the same are Rs. 37 and Rs41 respectively._____ is the
amount that is reqired to be deposited with the clearing
house(the contract is for 100 shares)

20 which of the following is true?

going short on a currency and long on a call option results

21
in the pay-off profile of a
22 which of the following regarding short selling is not true?
if a foreign currency depreciates, exchange losses will
23
occur when exposed
using the black scholes model,_____is the value the
following call option for the following data. stock price
24 rs,210, srike price rs. 220 time to expiration 167days. risk
free interest rate 10% variance of annual stock returens
20%
an option market hedge in foreign exchange risk
25
management is a form of a(an)

26 a strangle involves

27 the theory of purchasing power parity says that

28 A currency call option gives the

Suppose the price of a share of Google stock is $500. An

April call option on Google stock has a premium of $5 and
29
an exercise price of $500. Ignoring commission, the holder
of the call option will earn a profit if the price of the share

______is used a major means of reducing risk in

30
international transactions

1 Ashort hedge occurs when

2 which of the below mentioned statement is false?
 3 all else equal, call option values are lower
______is the value of the march 482 call on futures
contract on December 25, 2014. the futures price is 465.75
4 and strike price is $482. the risk free interest rate is 8% per
year. the last trading day for the futures call is March 15,
2015. the standard deviation is 30%

5 A currency call option gives the

Top flight stock currently sells for $53. A one-year call

option with strike price of $58 sells for $10, and the risk
6
free interest rate is 5.5%. what is the price of a one-year put
with strike price of $58.
if A and B enter the swap contract, the effective interest A
7
would be paying each year
8 which one of the following is not true?
going short on a currency and long on a call option results
9
in the pay-off profile of a
Due to mark-to-market, profits and losses are settled at the
10
end of
If the condition is such that the forward price is more than
11
the spot price which strategy is best?

Suppose the price of a share of Google stock is $500. An

April call option on Google stock has a premium of $5 and
12
an exercise price of $500. Ignoring commission, the holder
of the call option will earn a profit if the price of the share

13 which of the following is exchange traded

what does 'B' save by doing the swap and not borrowing
14
from the market at 14% fixed rate?
according to the black scholes model, the short term seller
15
receive today price
if an investor wants to trade in forwards contract he can do
16
so through/with

17 a protective put strategy is

In case of fututres contract by marking to market the value

18
of contract
 the stock of X ltd is currently quoted in the market at Rs.
195. The company has declared a dividend of Rs. 8 per
share recently, which will be distributed to the shareholders
after two months. The volatility of X's stock price is 15%
19
annually. The Rf rate prevailing bin the economy is 6%p.a.
By using black-scholes option valuation model,______is
the price of 6 month put option on the company's stock at
an exercise price of Rs. 225.

according to a survey by Bank of America, the type of

20 foreign exchange risk most often hedged by firms is
______
the value of the forward contract at the time it is first
21
entered is
if the transaction costs are ignored, simultaneous sale of a
22 call and purchase of put at same strike price and expiry
gives a pay-off profile identical to
which of the following activities of the risk management
23 process are long-term in nature and dod not require
constant review?
which of the following is the part of the risk management
24
process?
an investor wrote a naked call option. the premium was Rs.
2.50per share and the market price and the exercise price of
25 the same are Rs. 37 and Rs41 respectively._____ is the
amount that is reqired to be deposited with the clearing
house(the contract is for 100 shares)
a swap quote of LIBOR/fixed 5 year swap at 85/95 over 5
26
year treasury by a bank means that
the yeild on treasury bill with a maturity is classified as
27
risk free rate and must be equal to
______is used a major means of reducing risk in
28
international transactions
according to the black scholes model, the purchaser can
29 borrow fractions of security at risk free interest rate which
is
calculate the present value of bond A whose coupon rate is
30
7%

the situation in call option in which the strike price is

1
greater than current price of stock is classified as
in calculation of the value of dividend paying sdecurities,
4
the income is subtracted because
 Black-Schole model uses the following variables to value
7
non-dividend paying call option except
8 option premium consist of
spot rate of canadian dollar is $0.80. A 90-day forward rate
of canadian dollar is $0.79. 90-day canadian interest rate is
9 4% and 90-day US interest rate is 2.5%. If the initial
investment is $1000,000. What would be the percentage
return to a US investor.

Consider a 9-month forward contract on a stock when the

stock price is $78. the risk-free rate of interest
10 (compounded continously) at 12% per annum for all
maturities. assume that dividends of $3 per share are
expected after 3 month and 6 month. what

Ann's stock price is currently $25. In the next six months it

will either fall to $15 or rise to $40. What is the current
15 value of a six-month call option with an exercise price of
$20? the six month risk-free interest rate is 5%(periodic
rate)
for a future contract entered into on january 15, the
16 maintenance margin is Rs. 4000. the balance in margin
account fall to Rs,1000 the contract holder must
you purchase a call option on British pounds for a premium
of $ 0.04per unit with an exercise price of $1.65. the option
17 will not be exercised untill the expiration date, if at all. if
the spot rate on the expiration date is $1.67. your net profit
or net loss will be
if there are more traders with ______offers than ____offers
20 for a particular contract, the future price will___untill the
imbalance is perceived
Difference between the futures market and forward market
21
include
if the volatility (variance) of the underlying stock increases
25
than the
if you grow sugarcane in your farms, how will you hedge
26
your risk?
person a entersd long in a futures contract for corn on
December21. the looked price for the contract is Rs. 20. on
28 dec 22 the future price of the contract of the trading day is
Rs. 22 and on dec 23 itis Rs. 24 and on dec 24 it is Rs. 22.
Calculate the profit or loss from the contract
 an investor is trying to determine the price of a forward
contract of 9 month maturity on a stock with current
29 market price of Rs. 70. Assuming risk free rate as 6% per
annum. Also assume an equal dividend of Rs. 10 is
expected after 6 months and 9 months.
a _______is the minimum level by which an investor's
equity position may fall as a result of unfavourable price
30
movements before the investor is required to deposit
additional amount.
33 a short forward contract is profitable untill
34 none of the below is incorrect except
in binomial approach of option pricing model, the value of
35 stock is subtracted from call option obligation value to
calculate
39 margin level are determined by
in cross-hedging, when the futures contract is highly
40 correlated with the porfolio being hedged, the value of the
futures contract changes by
as the time to maturity increases, call and put option
41
become
Carol's stock price is currently $20. In the next six months
it will either fall to $10 or rise to $40. what is the current
42 value of a six month call option with an exercise price of
$12? the six month risk free interest rate(periodic rate) is
5%.
the value of n(d) in black-scholes model can take any value
43
between:
a stock is currently selling for $100. One year from todya
the stock price could go up by 30% or go down by 20%.
44 the risk-free interest rate is 10%. calculate the price of a
one-year European call option on the stock with an
exercise price of $100
_______try to lock in a profit by involving two or more
45
markets
47 A currency swap bank is usually
to liquidate a futures position by entering an equivalent, but
50 opposite transaction which eliminates the delivery
obligaton is called as:
______risk refers to fluctuations in the value of the
51
instrument as a result of market conditions
the option that gives investors the right to sell a stock at
52
predefined price classified as
 in put call parity relationship, the put option minus call
54
option plus stock is equal to
a stock is currently selling of $50. th estock price could go
up by 10% or fall by 5% each month. The monthly interest
55 rate is 1% (periodic rate). calculate the price of an american
put option on the stock with an exercise price of $55 and a
maturity of two months.

a stock is currently selling of $50. th estock price could go

up by 10% or fall by 5% each month. The monthly interest
56 rate is 1% (periodic rate). calculate the price of an american
put option on the stock with an exercise price of $55 and a
maturity of two months.
the_______rate indicates the rate at which a currency can
57
be exchanged in the future.
the movement of price or the rise or fall of prices of
58
options is classified as
an investor expects a stock to increase in value from its
current price of $23 per share. the investor purchases a call
59 option in the stock that has an exercise price of $27 per
share. the option premium is $3 per share. On the expiratio
date, the stock
the premium for a british put pound with an exercise price
61 of $1.70 is $.05. what is teh breakeven spot rate for the
buyer of the put.
A 6 month forward contract on an investment asset with
current price of Rs. 90 is expected to provide income equal
62 to 3% of the asset price twice in a year. the risk free
interest rate (with continous compounding) is 8% per
annum. the forward price is
63 the major types of risk in derivatives trading are
64 A currency swap broker is swap bank who
the increase in value of option leads to low present value of
65
exercise cost only if

Victoria's stock price is currently $20. In the next six

month it will eithe fall to $10 or rise to $30. what is the
66
current value of a put option with an exercise price of $12?
the six month risk-free interest rate is 5%(periodic rate).
 consider the following data relating to NM stock. NM
stock has a beta of 0.7 with nifty. each nifty contract is
67 equal to 200units. NM now quotes at Rs. 150 and th eNifty
futures is 1400 index points. you expects price to fall and
have gone short on 1200 shares of NM in the spot market.

If the price in the spot market drops by 10%. What will be

1
the amount of gain or loss?
if the price increase by 5%, what will be the amount of
2
gain or loss?
3 how many future contracts will you have to take?
4 the above situation deals with
option expiration

$45

horizontal option spread

call option with lower strike price are more

valuable

0.5

LIBOR +2%

$6.23 C=48-[45/1.04]+1.5

greatly exposed to exchange rate risk

all of the above

American option

the purchaser of a share of stock with a

simultaneously sale of a call that stock
a long put plus a long position in the
underlying asset.
bank is willing to pay and receive fixed rate to
be determined
in the over the counter market
full cash proceeds

being short on forward

translation exposure

all of the above

620

an american option can be exercised any time

during the life of the contract

put option buyers

it is an arbitrage strategy
receipts are greater than exposed payments

24.89

covered hedge

buying a call and put with same expiration

date and different exercise price
the exchange rate will adjust to reflect
changes in the price levels of two countries

buyer the right to buy the underlying currency

increased to $506

letter of credit

a firm that owns or plans to purchase

profits from the option contract are not linear
for high dividend payout policy

18.55

buyer the right to buy the underlying currency

11.97

LIBOR +2%
all of the above
put option buyers

everyday

sell forward contract

increased to $506

futures and options

0.5% each year

full cash proceeds

another forward contract trader

a long put plus a long position in the

underlying asset.

unaffected
32.08

translation exposure

both a & c

being short on forward

policy formulation

all of the above

620

bank is willing to pay and receive fixed rate to

be determined

option expiration

letter of credit

short term

1000

all of the above

quality of call option
current value, time value and intrinsic value

0.027

$8.57

price range, maturity and credit risk

by taking contract to sell at per agreed

forward price
4.2

maintenace margin

st>e

-1 to +1

Arbitrageur

offsetting
5.1

forward

credit, liquidity and settlement

0.86
hedged through futures
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Which of the following items can be found on an income statement
___________is the acquisition of an enterprise(s) by a person(s) or merger or amalgmation of enterprises
Declining star also known as
Quick assets is
Which analysis help in assessing the effect of changes in input parameters on the financial parameters contained in projected
financial statement
Quick ratio is also known as
financial analysis can be made from
to create a common size income statement____all items on income statement by______
difference between operating profits after taxes and total cost of fund is
what remains after we subtract operating costs and capital expenditures necessary to at least sustain cash flows from total firm
revenues?
in recent years, joint ventures are also termed as
_____a snapshot of the financial condition of the firm at a particular time
merger and amalgmation under the companies act requires mandatory sanction by the________
______involves prediting and estimating future outcomes based on past trends and current actions
a cash budget
equity dividend paid should be classified as cash flow from
a merger of firms engaged at different stages of production but in the same industry is called
GAAP stand for
a public offer by one firm to directly buy the shares of another firm is called as:
_______is the average of book value, market value and intrinsic value
two forms of statement of change in financial position (SCPF) which are commonly used are as follows:
Which of the following items can be found on an income statement
the statement helps in analysing the changes in the working capital position of the firm is
which is not the tax concession too amalgmated company
ordinary equity is also called
financial analysis can be made from
the ideal quick ratio is
financial analysis can be made from
in a merger the
which is not the advantage of merger

which ratio is the best known measure of financial strength

dividend coverage ratio is
which is not the advantage of merger
which is not the tax concession to amalgmated company
the process of developing strategy for a business by researching the business and the environment in which is functions is cal

financial analysis can be made from

cash inflow arise from ___assets, _________liabilities and ________stakeholders' equity
which is not the catagory of ROI
which is not application of fund
the ideal quick ratio is
cash flow from operaton ratio is
Which of the following items can be found on an income statement
which statement is prepared in the process of fund flow analysis
the positive incremental net gain associated with the combination of two firms through a merger or acquisition is called:
Which of the following items can be found on an income statement
P/E ratio is
merger and amalgmation under the companies act requires mandatory sanction by the________
purchase of machinery by means of issue of shares should be _____from cash flow statement
in a merger the
ordinary equity is also called
_______is the average of book value, market value and intrinsic value
non-current liabilities are also called
___________is the acquisition of an enterprise(s) by a person(s) or merger or amalgmation of enterprises
a public offer by one firm to directly buy the shares of another firm is called as:
the firm is involved recently in accounting scandal
_____a snapshot of the financial condition of the firm at a particular time
information that goes into___can be used to help prepare_______
which of the following is not a cash outflow for the firm
Quick assets is
Which of the following items can be found on an income statement
Sales
coloboration
cash cows
current assets-inventory-prepaid exenses
sensitivity analysis
Acid test ratio
items in Profit and loss account and balance sheet by estabilishing
relationship
divide, total revenue
economic value added
free cash flows
strategic alliance
the balance sheet
NCLT
financial forecasting
would be as useful to a business which makes sales only on a credit basis, as
it is to a business making sales for cash
financing activity
vertical merger
general accepted accounting principles
a merger
fair value
cash flow statement and fund flow statement
Sales
fund flow statement
bad debts
net worth of the firm
items in Profit and loss account and balance sheet by estabilishing
relationship
1:01
items in Profit and loss account and balance sheet by estabilishing
relationship
acquiring firm retains its name and legal status
simplification

current ratio
EAT/preference dividend
simplification
bad debts
strategic analysis
items in Profit and loss account and balance sheet by estabilishing
relationship
decreasing, increasing, increasing
return on turnover
long term borrowings
1:01
cash flow from operation/ current liabilities
Sales
fund flow statement
synergy
Sales
MPS/EPS
NCLT
excluded
acquiring firm retains its name and legal status
net worth of the firm
fair value
long term liabilities
coloboration
merger
Satyam
the balance sheet
a forecast income statement, a forecast balance sheet
depreciation
current assets-inventory-prepaid exenses
Sales
 The situation in call option in which the strike price is
1 out of the money
greater than current price of stock is classified as
In calculation of the value of dividend paying
2 all of the above
sdecurities, the income is subtracted because
Black-Schole model uses the following variables to
3 quality of call option
value non-dividend paying call option except
current value, time value and
4 Option premium consist of
volatility
Spot rate of canadian dollar is $0.80. A 90-day forward
rate of canadian dollar is $0.79. 90-day canadian interest
5 rate is 4% and 90-day US interest rate is 2.5%. If the 0.027
initial investment is $1000,000. What would be the
percentage return to a US investor.

Consider a 9-month forward contract on a stock when

the stock price is $78. the risk-free rate of interest
6 (compounded continously) at 12% per annum for all 5.01
maturities. assume that dividends of $3 per share are
expected after 3 month and 6 month. what

Ann's stock price is currently $25. In the next six months

it will either fall to $15 or rise to $40. What is the current
7 value of a six-month call option with an exercise price of $8.57
$20? the six month risk-free interest rate is 5%(periodic
rate)
For a future contract entered into on january 15, the
8 maintenance margin is Rs. 4000. the balance in margin add Rs.3000 to the acount
account fall to Rs,1000 the contract holder must

You purchase a call option on British pounds for a

premium of $ 0.04per unit with an exercise price of
9 $1.65. the option will not be exercised untill the loss of $0.02
expiration date, if at all. if the spot rate on the expiration
date is $1.67. your net profit or net loss will be

If there are more traders with ______offers than

10 ____offers for a particular contract, the future price buy; sell;rise
will___untill the imbalance is perceived
Difference between the futures market and forward price range, maturity and credit
11
market include risk
If the volatility (variance) of the underlying stock value of both the put option and
12
increases than the the call option increases
If you grow sugarcane in your farms, how will you by taking contract to sell at per
13
hedge your risk? agreed forward price
 Person a entered long in a futures contract for corn on
December21. the looked price for the contract is Rs. 20.
14 on dec 22 the future price of the contract of the trading profit of Rs. 2
day is Rs. 22 and on dec 23 itis Rs. 24 and on dec 24 it is
Rs. 22. Calculate the profit or loss from the contract

An investor is trying to determine the price of a forward

contract of 9 month maturity on a stock with current
15 market price of Rs. 70. Assuming risk free rate as 6% per 4.2
annum. Also assume an equal dividend of Rs. 10 is
expected after 6 months and 9 months.
A _______is the minimum level by which an investor's
equity position may fall as a result of unfavourable price
16 maintenace margin
movements before the investor is required to deposit
additional amount.
17 A short forward contract is profitable untill st>e
margin requirements on short
18 None of the below is incorrect except futures positions are the same as
on the long future position
In binomial approach of option pricing model, the value
19 of stock is subtracted from call option obligation value to Current value of portfoilio
calculate
variation in price of underlying
20 Margin level are determined by
assets
either a higher percentage, a
In cross-hedging, when the futures contract is highly
lower percentage, or the same
21 correlated with the porfolio being hedged, the value of
percentage as the portfolio's
the futures contract changes by
market value
As the time to maturity increases, call and put option neither of the two types is
22
become valuable
Carol's stock price is currently $20. In the next six
months it will either fall to $10 or rise to $40. what is the
23 current value of a six month call option with an exercise 9.78
price of $12? the six month risk free interest
rate(periodic rate) is 5%.
The value of n(d) in black-scholes model can take any
24 0 to +1
value between:
A stock is currently selling for $100. One year from
today the stock price could go up by 30% or go down by
25 20%. the risk-free interest rate is 10%. calculate the price 16.36
of a one-year European call option on the stock with an
exercise price of $100
 _______try to lock in a profit by involving two or more
26 Arbitrageur
markets
27 A currency swap bank is usually a financial intermediary
To liquidate a futures position by entering an equivalent,
28 but opposite transaction which eliminates the delivery offsetting
obligaton is called as:
______risk refers to fluctuations in the value of the
29 market
instrument as a result of market conditions
The option that gives investors the right to sell a stock at
30 put option
predefined price classified as
In put call parity relationship, the put option minus call
31 exercise price present value
option plus stock is equal to
A stock is currently selling of $50. th estock price could
go up by 10% or fall by 5% each month. The monthly
32 interest rate is 1% (periodic rate). calculate the price of 3.96
an american put option on the stock with an exercise
price of $48 and a maturity of two months.

A stock is currently selling of $50. th estock price could

go up by 10% or fall by 5% each month. The monthly
33 interest rate is 1% (periodic rate). calculate the price of 5.1
an american put option on the stock with an exercise
price of $55 and a maturity of two months.
The_______rate indicates the rate at which a currency
34 forward
can be exchanged in the future.
The movement of price or the rise or fall of prices of
35 binomial lattice
options is classified as
An investor expects a stock to increase in value from its
current price of $23 per share. the investor purchases a
36 call option in the stock that has an exercise price of $27 profit of $1
per share. the option premium is $3 per share. On the
expiratio date, the stock
The premium for a british put pound with an exercise
37 price of $1.70 is $.05. what is teh breakeven spot rate for $1.65
the buyer of the put.
A 6 month forward contract on an investment asset with
current price of Rs. 90 is expected to provide income
38 equal to 3% of the asset price twice in a year. the risk 92.74
free interest rate (with continous compounding) is 8%
per annum. the forward price is
39 The major types of risk in derivatives trading are credit, liquidity and settlement
is strictly an agent to take orders
40 A currency swap broker is swap bank who
from her client
 The increase in value of option leads to low present
41 interest rates are high
value of exercise cost only if
Victoria's stock price is currently $20. In the next six
month it will eithe fall to $10 or rise to $30. what is the
42 current value of a put option with an exercise price of 0.86
$12? the six month risk-free interest rate is 5%(periodic
rate).

Consider the following data relating to NM stock. NM

stock has a beta of 0.7 with nifty. each nifty contract is
equal to 200units. NM now quotes at Rs. 150 and th
eNifty futures is 1400 index points. you expects price to
fall and have gone short on 1200 shares of NM in the
spot market.
If the price in the spot market drops by 10%. What will
43 Gain Rs.18000
be the amount of gain or loss?
If the price increase by 5%, what will be the amount of
44 loss Rs.9000
gain or loss?
45 How many future contracts will you have to take? 4.2
46 The above situation deals with hedged through futures
47 according to exercise value and option price, market valuestock price is zero
48 the excess of actual price of option over exercise value of time value of option
49 which of the following statement regarding short selling isit is an arbitrage strategy
50 the basic aim of the hedger is to offset risk/ reduce risk
first- define ending price of
stock, second-at expiration,
51 first, second, third and fourth step of binomial approach ofthird- equalize range of
payoffsand fourth - riskless
investment
the last day at which Europeon and American option can
52 expiration date
be exercised is classified as
 72.1
72.1
3
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2.34
80.34
2.4102
82.7502
4.7502
2.482506
85.232706
7.232706
2222222266666666666666666666666666666666666666666666666+