MFP-4: CURRENCY AND DEBT MARKETS
ASSIGNMENT
Course Code : MFP – 4
Course Title : Currency and Debt Markets
Assignment Code : MFP - 4/TMA/SEM-II/2015
Assignment Coverage : All Blocks
Note: Attempt all the questions and submit this assignment on or before 31 st October, 2015 to the coordinator of your study centre. .
1. What do you understand by nominal, real and real effective exchange rates? Discuss the economic factors that affect these exchange rates.
2. a) What are 'Forward Rate Agreements' (FRAs)? Explain how can FRAs be used to hedge currency risk ?
b) What is Bond duration? How is modified duration calculated?
3. a) Describe the different types of money market instruments and briefly discuss the guidelines for the issuance of commercial paper.
b) Describe the trading, clearing and settlement process of currency and debt markets.
4. What are Government Securities? Discuss the different types of government securities and explain their special features.
5. a) What is a Non - Deliverable Forward (NDF) ? How is it used as risk management tool? Explain the limitation of NDF.
b)What is convexity? Explain how the value of a zero coupon bond; premium bond, par bond and the discount bond are calculated?
MFP-5: PROFESSIONALS IN FINANCIAL MARKETS PRACTICE
ASSIGNMENT
Course Code : MFP – 5
Course Title : Professionals in Financial Markets Practice
Assignment Code : MFP - 5/TMA/SEM-II/2015
Assignment Coverage : All Blocks
Note: Attempt all the questions and submit this assignment on or before 31 st October, 2015 to the coordinator of your study centre. .
1. Visit a Broker/Brokerage House of your choice and explain the role of a ‘Broker’ as a financial intermediary and discuss his major activities. Also describe the different types of Brokerage Houses.
2. Define ‘Merger’ and ‘Takeover’. Why do companies go for mergers? Discuss the different valuation techniques adopted in M & A deals.
3. Why is pricing of financial products important for a firm? Discuss the various factors which affect the pricing decision of a firm with the help of an example.
4. What is meant by ‘Insider Trading’? Discuss the different strategies adopted for preventing Insider Trading. Identify the major obligations of a company to prevent trading on insider information.
5. Explain the concept and significance of Portfolio Management Service (PMS). Discuss the Investment Strategies in Portfolio Management and describe their advantages and disadvantages.