POST GRADUATE DIPLOMA IN FINANCIAL
MARKET PRACTICE
Term-End Examination
June 2010
MFP-4: CURRENCY AND DEBIT MARKET
Time: 3 hours Maximum Marks: 100
Note: Attempt any five questions. All questions carry equal marks.
- What are the features of foreign exchange markets and how do they compare with other financial markets?
- Explain spot and forward rates and the factors determining forward margins.
- What is a currency option? What are its types? What are the factors that impact the pricing of an option? Discuss.
- Discuss the various techniques of currency exposure management.
- What do you mean by Repo? What are its uses? How is it priced? What are the different types of Repos?
- Describe the issuance process for Government securities. How does it differ from corporate bond issuance?
- Write short notes on any four:
- Negotiated Dealing System
- FEDAI
- STRIPS
- Commercial Paper
- Primary Dealers
- Put - Call Parity
- What is meant by interest rate sensitivity policy? What are broad parameters? Discuss.
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