Fin630 Fall 2011 Final Term Feb 2012 – VU Current Paper – 16 Feb 2012

WHAT R DERIVATEVS AND HOW USE THESE TO REDCE THE RISK.

HOW SECURITES ARE RELATED NAGATIVLY, POSITIVELY AND NO RELATION?

YOU HAVE A FUTURE CONTRACT IN KSE TO PURCHASE 200 SHARES AFTER ONE MONTH AND TO SELL 100 SHARES IN LSE. WHAT TYPE OF FUTURE CONTRACT THIS ?

ABC COMPANY yarn ka busness ker rhy ha,,,ap batain ye risk systmetic hn gay ya non systmetic,,,and compny can diversify these or not,,,justify..
-increase interest rate due to inflation
-sellab ki wja se kappa ski fasal barbad hue ha
-new regulation bnain han new government ne yarn busness k export par rvol calculate kerna tha aur btana tha k kon sa better ha aur kiu..

Portfolio Average rate of return Beta
A 15% 0.5
B 13% 0.6
C 12% 0.6

Figures are nearly same as above.
Return on treasury bill is 10 % ,,,,calculate ravol,,, and tell which protofolio is better and why?

Current rate of a security is RS.50,,, required intial margin is RS.25 AND MAINTENANCE COST IS RS.15. YOU HAVE A FIVE FUTURE CONTRACT ,,,FILL THIS TABLE

PRICE DAILY GAIN/LOSS AVERAGE BALNCE YOU WILL CALL OR NOT

50
1 48
2 43
3 38
4 47
5 39

DOWNLOAD SOLUTION HERE
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