M.B.A. (FM) INVESTMENT AND DERIVATIVES MARKET

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M.B.A. (FM) DEGREE EXAMINATION, MAY 2018.
Fourth Semester

INVESTMENT AND DERIVATIVES MARKET

(2013–2014 Academic Year & 2014 Calendar Year Onwards)
Time : Three hours Maximum : 100 marks

SECTION A — (5 x 8 = 40 marks)
Answer any FIVE questions.
All questions carry equal marks.

1. What is convexity? What is its relationship withduration?

2. What are horizon analysis and riding the yield curve?

3. What is the significance of secondary market?

4. What are the advantages of investing in government securities?

5. What are the features of 'option'?

6. Describe the types of 'futures contract'.

7. How is yield related to the price?

8. What is immunization? How to accomplish immunization?

SECTION B — (4 x 15 = 60 marks)
Answer any FOUR questions.
All questions carry equal marks.

9. Explain the key features of debt market in India.

10. What is bond swap and what are the advantages of bond swaping?

11. Describe the features of fixed income securities.

12. Explain the factors influencing the Price-to-Earnings Ratio.

13. What do you know by profit diagrams? How profit diagram can he useful in making strategies of option trading?

14. Explain the role of various participants in 'futures market'.

15. Discuss the different types of government securities.

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