Define intrinsic value and time value of an option with suitable example
www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040 Risk Management Total Marks – 80 1. Attempt any 5 questions. Make suitable assumptions wherever necessary. Q.1 (a) There are so many types of risk associated with the business – elaborate the sentence with suitable examples. (b) What is Derivative? Define various types of instruments of it. Q.2 Distinguish between forward contract & future contract. Q.3 (a) Explain the various types of option: 1. Based on activity 2. Based on exercise (b) Define intrinsic value and time value of an option with suitable example Q.4 Define the currency future. How a person can do “Arbitrage” using currency future? Q.5 (a) What is currency Swap? Classify the different types of currency rate Swaps (b) What are the positions which can be taken by an investor in the options market? Q.6 (a) What are T-bill futures? Classify the hedging strategies with T-bill futures. (b) What is “Plain Vanilla” swap? Classify the different types of Interest rate Swaps 7. a) Define Risk and types of Risks. b) Differentiate between Peril and Hazard and give an example of each. 8. a) Explain in detail various Principles of Insurance? b) Discuss the role of agents in Insurance business. 9. Discuss the Risk Aversion and Risk Management strategies adopted by Corporations in India. 10. Explain different variations under Whole Life Insurance. 11. How do you protect the Shareholders’ Wealth with the help of risk Management? www.answersheets.in info.answersheets@gmail.com info@answersheets.in 91 95030-94040
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