Derivatives and Commodities Question Bank for November 2017 TYBMS Sem 5 Exam

Derivatives and commodities

Unit 1

1. Who are the participants of commodities and derivatives markets
2. What are the advantages of investing in commodities
3. What are the types of derivative instruments
4. What are the features and importance of derivatives
5. Futures vs forwards vs options
6. OTC vs ETC
7. What are the disadvantages of investing in derivatives
8. What are the factors driving the growth of derivatives markets

Please note:- Q1 would be based on Unit 1. All 3 theory questions, attempt any 2 out of 3

Unit 2

1. What are index futures and what are features of the same
2. Concepts:- cost of carry, basis, open interest, initial margin, maintenance margin, cash vs physical settlement, SPAN, limit order, market if touched order, long hedge, short hedge, cross hedge, Novation, cash and carry, perfect and imperfect hedge, convergence
3. How are futures settled
4. Hedging strategies with futures
5. What are the uses of futures
6. Numerical on payoff of futures along with payoff chart, cash and carry arbitrage

Please note:- Q2 would be based on Unit 2. 1 long theory question, 1 questions with 3 concepts and 1 numerical question, attempt any 2 out of 3

Unit 3

1. Concepts on strike price, moneyless of options, delta, theta, gama, rho, American and European option,
2. Why do we buy an option call or put
3. What are the pricing models for option contracts (BSM and Binomial)
4. What are the factors affecting option premium
5. How do we hedge with options
6. Trading strategies with options
7. Numericals on options strategies along with payoff charts

Please note:- Q3 would be based on Unit 3. 1 long theory question, 1 questions with 3 concepts and 1 numerical question, attempt any 2 out of 3

Unit 4

1. What are the types of risk in derivatives
2. Explain VaR and how is it calculated
3. What are the different types of margins in derivatives
4. Explain the regulatory framework for derivatives in India
5. Role of SEBI in ensuring investor protection for derivatives
6. What are the types of orders and how can they be settled.
7. What is NSCCL and elaborate the functions and objectives of the same

Please note:- Q4 would be based on Unit 4. All 3 theory questions, attempt any 2 out of 3

Case study would have 10 marks case (2×5 questions) and a 5 mark sum on fair furture value.

Text books recommended

1. Rishabh Publications
2. Vipul Publications

For any further clarifications or exam guidance, feel free to contact Prof Vipin Saboo on 9820779873 (call or whatsapp)