RESEARCH ASSIGNMENT

Subject: International Financial Management

Semester: MBA III (1st Shift Sec. A+B)
Instructor: Mr. Miklesh Prasad Yadav
Last Date of Submission: October 19, 2016

Subject Code
: MS 217
Batch
: 2015 2017
Maximum Marks : 10

Purpose

To evaluate the students understanding on various IFM issues and dimensions.

To know the analytical abilities of the students regarding foreign exchange.

Learning Objectives

To develop their understanding regarding the role and responsibility of a financial manager while
dealing with issues of international and domestic business environment.

Understanding different issues and challenges of international financial management like exchange
risk, political risk, expanded opportunity and market imperfection will give exposure to students.

Instructions:
Assignment should be in RDIAS folder on A-4 size sheet in typed form with times new roman
style and font for heading should be 16, for subheading 14, and for normal text 12 with 1.5 line
spacing. Unformatted or poorly formatted documents will be penalized
Students have to submit the soft copy of the assignment on portal along with plagiarism report for
the same. If the plagiarism report shows that more than 40% content is copied from internet, the
assignment will not to be accepted.
Students have to submit hard copy along with plagiarism report to the respective faculty.
While submitting the hard copy of Research Assignment to the faculty they need to sign on the
submission list available with the faculty.

RESEARCH ASSIGNMENT
MBA III Sem. (1st Shift Sec. A+B) September, 2016
Paper Code: MS-217
Max. Marks : 10
Note: Attempt any one question.

Subject: International Financial Management

Q. 1 Both fixed and floating rates claim to promote exchange rate stability while controlling
inflation. Is it possible for these two divergent systems to achieve the same goals?
Q. 2 You have called your foreign exchange trader and asked for quotations on the spot, one-month,
three month and six month. The trader has responded with the following :
USD 0.2479/81

3/5

8/7

13/10

(a) What does this mean in terms of dollars per euro?

(b) If you wish to buy spot euros, how much would you pay in dollars?
(c) If you wanted to purchase spot US dollars, how much would you have to pay in euro?
(d) What is the premium or discount in the one, three and six month forward rates in annual
percentages? (Assume you are buying euros)
Q. 3 There is no single policy which is suitable for all the developing countries, and each may have to
use a different exchange rate policy mix comment on it.
Faculty Signature:------------Faculty Name: Miklesh Prasad Yadav
MBA Department, RDIAS
Date: 01/06/ 2016
Place: RDIAS

HOD-MBA