Major Assignment

10 marks (Part 1 and Part 2)

Viva

10 marks (Part 1 and Part 2)

PART 1:
1. Collect consecutive six months spot and future share prices data of the assigned companies
2. Find the hedge ratio between spot and future prices
3. Assume that you have a long position of 3000 shares in the assigned company, then find the number of
future contracts (N) to hedge your position
4. Tell whether short-selling or taking a long-position will hedge your existing position
5. Calculate profit or loss right after the six months period (the period which you have used for
calculating the hedge ratio)
6. Tell whether your position is fully hedged or not based on the findings in step 5

Name

Companies

Sayeda Tayyaba Shah

PPL

Adil Raza

SNGP

Irfan Ullah

PIOC

Palwasha Jamshed

OGDC

Sundus Sheraz

FATIMA

Mian Umar Sohail

ATRL

Mohammad Nabi

DAWH

Fazlullah

NCL

Arshid Ali

FFC

Asim Ullah

FFBL

Sayed Fayez Khan

UBL

Hameeda

BAFL

Helina

AHCL

Amanat Khan

FCCL

Zarnageen Naseer

DGKC

Kashmala Mukhtiar

EFOODS

Ali Mohsin Jadoon

MCB

Faizan Pervaiz

NBP

Muhammad Ilyas

SSGC

Muhammad Hassnain

AICL

Imrann Ullah

PSO

Rahim u Din Khan

Any (other than above)

Abdul Basit Irfan

Any (other than above)

PART 2:
Search and provide the answers of the followings:
1. Highlight different aspects of future contracts on KSE, such as their rules, eligible scripts, settlement process,
short-selling, margin requirements, etc.
2. Pakistan Mercantile Exchange Ltd., what it is, which commodities are traded on it, how to trade on it, its rules for
trading and settlement, who is eligible to trade on it, etc.
3. Is risk management practiced in Islamic financial institutions (IFI)? What is the State Bank of Pakistan guidelines
for risk management in IFI?
4. What is Basel Accord? What are its three main pillars?