CMR Institute of Management Studies

(Autonomous)
Affiliated to Bangalore University
Department of Management and Commerce
III Sem. M.Com - Model Question Paper [2017-18]
Subject: Commodity Markets
Subject Code: 3MCom06 (15)

Duration: 3 hrs. Total Marks: 100

SECTION A

I. Answer any FIFTEEN questions of the following questions: (15 x2 =30)

1. What is meant by commodity?

2. Define Cartels.
3. Who is a Speculator?
4. What is Call and Put Option?
5. What is a Futures Contract?
6. Give the meaning of Spot Price?
7. Define Commodity Exchange.
8. Name two leading commodity exchanges of India.
9. What do you understand by E-Auction?
10. What do CBOT and NCDEX stand for?
11. How does futures market benefit farmers?
12. What is the meaning of Mark to Market?
13. What do you understand by OTC Derivative Contracts?
14. Name four precious metals traded on commodity exchanges.
15. What are the benefits of commodity forward/future trading?
16. Quote the differences between American and European Options.
17. Who is the regulator of the Commodity Exchanges in India?
18. Name 4 organizations that play important role in International Commodity Agreements.

SECTION B

II Answer any FIVE questions of the following questions: (5 x 6=30)

19. Quote the difference between commodity derivative and financial derivative.
20. Briefly elaborate on the product profile and consumption trends of Sugar.
21. Briefly explain the various International Commodity Agreements with reference to agricultural
crops.
22. What do you understand by market? Discuss the types of markets.
23. Define Public and Private Cartels. Explain the Role of Cartels.
24. Discuss briefly about the various aspects, a commodity trader will consider for Gold Trading in
commodity exchange.
25. What is the Role of Commodity Exchanges in National and International Scenario?
26. What do you understand by Mark to Market? What is M2M role in Commodity Markets?
 SECTION C

III. Answer any FOUR questions of the following questions: (10 x 4=40)

27. What do you understand by ‘Physical Market’? Briefly explain the Characteristics, Limitations and
Risk involved in physical market.
28. What do you understand by ‘Derivatives’? Briefly explain commonly used Derivatives with
examples.
29. Explain the role of Forward Market Commission in regulation of commodities Exchanges in India.
30. Explain the concept of Quality Assurance. Why Quality is considered to be of so much importance?
Discuss the methods of Quality Assurance.
31. Discuss the Implications WTO Provisions in Agricultural Commodity Trading.
32. CASE STUDY
July WTI (West Texas Intermediate) crude oil futures trading on NYMEX increased by
1.95% and closed at $59.13 per barrel on June 5, 2015. Prices halted the two-day decline and
started rising on Friday, despite oversupply worries from OPEC (Organization of the Petroleum
Exporting Countries). The US benchmark following ETFs like the United States Oil Fund LP
(USO) and the Pro Shares Ultra DJ-UBS Crude Oil (UCO) also increased in Friday’s trade. They
rose by 1.22% and 2.59%, respectively, on June 5, 2015.

Q. Enumerate briefly the causes for the volatility of crude oil prices in the recent past.