Important MBA (BU) Question
(FSB-4) Financial Risk Management,
IV Sem, MBA (Regular, EX, ATKT) Banking and Financial Services Management
Unit I
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Q.1 Explain the following Risk Costs: (BU 2023)
(a) Risk Handling Costs
(b) Loss Control Costs,
Q.2 Explain the Principles of Corporate Risk Management. (BU 2023)
Q.3 Explain the following Risk Management Approaches with examples: (BU 2023)
(a) Risk Transfer
(b) Risk Avoidance
Q.4 Explain in detail the following Risks: (BU 2023)
(a) Credit Risk
(b) Internal Business Risk
(c) Price or Market Risk
(d) Events of God.
Q.5 Discuss how risk is managed. (BU 2021)
Q.6 Discuss the meaning and objective of Risk Management. (BU 2019)
Q.7 What are the various types of Risk. (BU 2019)
Q.8 Discuss the process and various techniques of corporate Risk Management. (BU 2019)
Unit II
Q.1 Define and Explain Characteristics of Strangle Strategy. (BU 2023)
Q.2 Define Index Futures and Explain Hedging through Index Futures. (BU 2023)
Q.3 Define the term ‘Hedging’. What are its objectives. (BU 2021)
Q.4 Describe the advantages and disadvantages of futures Market. (BU 2019)
Unit III
Q.1 Define American Option and European Option. Explain Difference. (BU 2023)
Q.2 Explain with Examples and Pay off Diagrams the following (BU 2023)
Option Trading Strategies:
(a) Buy Call
(b) Sell Put
Q.3 Differential between Future and Forward market. (BU 2021)
Q.4 Define currency option? Also differentiate between call option and Put option. (BU 2019)
Q.5 State the difference between forward and future market Also explain about the futures Market Trading Mechanism. (BU 2019)
Q.6 Explain Black Scholes option pricing Model, what are the various needed is this model to calculate the option price? (BU 2019)
Unit IV
Q.1 Define Interest Rate Swaps. Explain with Relevant Diagram. (BU 2023)
Q.2 What is currency swap ? Discuss. (BU 2021)
Q.3 Define Swaps. What are the various types of Swaps? (BU 2019)
Q.4 Distinguish between Interest Rate Swaps and currency swaps How does currency swaps reduce exposure to risk? (BU 2019)
Unit V
Q.1 Define Exchange Rate Risk. Very Briefly Explain the Meaning of three types of Exposures which constitute Exchange Rate Risk. (BU 2023)
Q.2 Explain the three types of Participants in Derivative markets and their Role. (BU 2023)
Q.3 Explain the recent trends in Derivatives Market in India. (BU 2021)
Q.4 What do you understand by Derivatives Also explain the types of Derivatives. (BU 2019)
Q.5 Explain the recent trends is Derivatives Market in India. (BU 2019)
Q.6 What do you mean by foreign Exchange Market? Discuss its functions and participants. (BU 2019)
Q.7 List down and explain in detail the different types of players in derivatives market. (BU 2019)
Extra Questions
Q.1 Calculate the price of the European style call option for a non-dividend paying stock when the stock price in Rs. 52. The strike price is Rs. 50, the risk-free interest is 12% per annum, the volatility is 30% per annum and the time for maturation is three months. (BU 2023)
Q.2 Company A wishes to borrow US dollars at a fixed rate of interest. Company B wishes to borrow Japanese yen at a Fixed rate of interest. The amounts required by the two companies are roughly the same at the current exchange rate. The companies are subject to the following interest rates, which have been adjusted to reflect the impact of taxes: (BU 2023)
No. of Company | Yen
| Dollars
|
Company A
| 5.0%
| 9.6%
|
Company B
| 6.5%
| 10.0%
|
Design a swap that will net a bank, acting as intermediary, 50 basis points per annum. Make the swap equally attractive to the two companies and ensure that all foreign exchange risk is assumed by the bank.
— Best of Luck for Exam —
