FINANCIAL MARKETS AND DERIVATIVES

ASSIGNMENT –I
1. (a) Capital market.
(b) Primary market.
(c) Hedging.
(d) Stock option price.
(e) Binomial model.
(f) Interest rate derivative securities.
2. What are components of Indian Money Market?
3. State the role of SEBI in the Indian capital market.
4. Explain the approaches employed to price derivative securities.
ASSIGNMENT –II
5. Bring out the operations of derivatives market in India.
6. Describe the trading strategies followed in the option market.
7. Distinguish between forwards and futures with examples.
8. Case study :
Consider the following data :
Stock price = Rs. 50
Months to expiration = 3 months
Risk-free rate of Interest = 10% p.a.
Standard deviation of stock = 40%
Exercise Price = Rs. 55
Option type = European Call
Calculate the value of Call option as per Blank-Scholes Model.

No comments:

Post a Comment