BUSI3184-E1
BUSI3184-E1
The University of Nottingham
BUSINESS SCHOOL
A LEVEL 3 MODULE, SPRING SEMESTER 2020-2021
FINANCIAL MARKETS: THEORY AND COMPUTATION
Take home exam: 48 hours, Expected time: 3 hours
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Answer ALL questions in Part A and Part B.
All questions in Parts A and Parts B carry equal marks of 5%.
Answers TWO questions in Part C.
All questions in Part C carry equal marks of 12.5%.
Answers TWO questions in Part D.
All questions in Part D carry equal marks of 12.5%.
ADDITIONAL MATERIAL: Neave, H. R. Statistics Tables: for mathematicians, engineers,
economists and the behavioural and management sciences.
2 BUSI3184-E1
SECTION A
Answer ALL questions. All questions carry equal marks of 5%.
1. Explain the difference between the primary market and the secondary market. (Word
limit 100)
2. Explain Negotiable Certificates of Deposit. (Word limit 100)
3. Explain how foreign interest rate can affect investment in international bond. (Word
limit 100)
4. When and why would firms use non-deliverable forward to hedge their currency
exposure? (Word limit 100)
5. Briefly explain how the volatility of the underlying asset price affect the price of four
types of options. (Word limit 100)
