Q M Part 1 /50

21 /12.5 22 /12.5 23 /12.5 24 /12.5

Total

BUS325 DERIVATIVE SECURITIES

ADVICE

IN-TERM TEST SEPTEMBER TRIMESTER 2013

TIME ALLOWED: 90 MINUTES

AIDS ALLOWED: FINANCIAL CALCULATOR

This paper has two parts. Part A contains 20 multiple choice questions worth a total of 50 marks, and Part B contains 4 questions worth 12.5 marks each.

Answer Part A on the answer sheet, and Part B on the question paper in the space provided. Show all calculations for Part B.

2

Part A Answer these questions on the answer sheet.

1 -20 Multiple choice. Mostly qualitative with minor calculations. [50 marks]

Part B Answer these questions on the question paper in the space provided.

21. Calculation interest rates and bond pricing [12.5 marks]

22. Calculation futures hedge [12.5 marks]

23. Calculation valuation of futures position [12.5 marks]

24. Calculation equilibrium futures prices [12.5 marks]

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END OF PAPER

3

Formulae you may require:

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