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This document contains an exam for a course in International Financial Management. It includes 5 multiple choice questions testing concepts like market strategy, exemptions to the law of one price, types of hedging techniques, and formations of trading blocks. It also includes short answer questions about increasing interdependence in the global economy, balance of payments, forward exchange contracts, and purchasing power parity. Students are asked to write notes on floating exchange rate systems, the World Bank, and transaction exposure. There is a case study calculating forward premiums and discounts using spot and forward exchange rates between the British pound and Indian rupee. Finally, students can choose to explain differences between American and European quotes and direct and indirect quotes, or forward rates versus expected spot
This document contains an exam for a course in International Financial Management. It includes 5 multiple choice questions testing concepts like market strategy, exemptions to the law of one price, types of hedging techniques, and formations of trading blocks. It also includes short answer questions about increasing interdependence in the global economy, balance of payments, forward exchange contracts, and purchasing power parity. Students are asked to write notes on floating exchange rate systems, the World Bank, and transaction exposure. There is a case study calculating forward premiums and discounts using spot and forward exchange rates between the British pound and Indian rupee. Finally, students can choose to explain differences between American and European quotes and direct and indirect quotes, or forward rates versus expected spot
This document contains an exam for a course in International Financial Management. It includes 5 multiple choice questions testing concepts like market strategy, exemptions to the law of one price, types of hedging techniques, and formations of trading blocks. It also includes short answer questions about increasing interdependence in the global economy, balance of payments, forward exchange contracts, and purchasing power parity. Students are asked to write notes on floating exchange rate systems, the World Bank, and transaction exposure. There is a case study calculating forward premiums and discounts using spot and forward exchange rates between the British pound and Indian rupee. Finally, students can choose to explain differences between American and European quotes and direct and indirect quotes, or forward rates versus expected spot
MASTER OF BUSINESS ADMINISTRATION (M.B.A.) EXAMINATION :MAY : 2017 FOURTH/THIRD SEMESTER Sub: International Financial Management (MFM-15303/ MFM-411) Date: 19/05/2017 Total marks: 60 Time: 2.00 pm to 4.30 pm SECTION - I Q.1 Fill in the blanks. (5) 1. Market selection, pricing are Market Strategy. a) True b) False 2. Exemptions of law of one price. a) No Transportation cost b) No Taxes c) Faster execution d) No intermediary 3. Forwards is one of the _________Hedging Technique. a) Internal b) Future c) External d) Domestic 4. ________results when the domestic currency of assets, liabilities or operating incomes becomes variable in response to unexpected changes in exchange rates. a) Foreign exchange market b) Foreign exchange risk c) Foreign exchange mechanism d) Foreign exchange rate 5. _______are formed by geographically close countries, and revolve around a small group of larger economies. a) Market place b) Trading blocks c) Economic union d) Global economy Q.2 Answer the following. (Any Two) (20) 1. What do you understand by the term 'Increasing Interdependence in the global economy'? 2. Explain 'Balance of Payments'. 3. What is 'Forward Exchange Contract'? 4. Write in brief about 'purchasing power parity principle'. Q.3 Write notes on. (Any Two) (10) 1. Floating exchange rate system. 2. World Bank. 3. Transaction Exposure. SECTION - II Q.4 Case Study:- From the data given below calculate forward premium or discount, as the (15) case may be, of the £ in relation to the rupee with respect to a sale & bid price. Re/£ Spot Rs. 77.9542/78.1255 1 month forward Rs. 78.2111/4000 3 months forward Rs. 77.6055/.7555 6 months forward Rs. 78.8550/9650 Q.5 Answer the following. (10) a) Explain 'American vs. European Quote' and 'Direct vs. Indirect Quote'. OR
b) Write in brief about 'Forward rates vs. Expected spot rates'.
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International Financial Management (MFM-15303/MFM-411) AFD/I 1/1