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Refer/WI/ACAD/18

SHRI RAMSWAROOP MEMORIAL GROUP OF PROFESSIONAL COLLEGES

MBA [SEM 4] (Groups 41,42)
QUIZ TEST-2
(Session: 2019-20)
FINANCIAL DERIVATIVES
Time: 1 hour (KMB-FM-05) Marks: 30

Roll No.
(To
be filled by the Student)
Note: Attempt all Questions

Part – A
(Questions from Tutorial Sheet-4)

Marks C.O. B.L.

1. “A swap is a derivative contract between two parties that involves the exchange of 5 4 2
pre-agreed cash flows of two financial instruments.” Discuss this statement.
(T4 Ques. 1 (5 marks) (250-300 words)
2. Identify and explore the most common types of swap contracts. 5 4 1
(T4 Ques.2 (5 marks) (250-300 words)

Part – B

3. Short Questions: (25-30 words) Marks C.O. B.L.

a) State the concept counterparty risk. 1 3 1
b) State the concept forward Rate Agreement. 1 3 1
c) What is a commodity swap? 1 3 2
d) What is Equity swap? 1 3 2
e) State the concept of LIBOR. 1 3 2
4. Explain the process of executing Currency Swap and Interest rate swap? 5 3 2
5. “The Black–Scholes formula calculates the price of European put and call 5 4 2
options”. Discuss this statement and assumptions of this model.

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KMB-FM-05/Mr. Vivek Singh Rana Page-1

Date: 11/05/2020