This document contains 4 questions related to banking management and finance: 1) It provides spot and forward exchange rates for the Indian rupee against the US dollar for various time periods and asks to calculate the forward rates, premium rates, and swap rates. 2) It asks for comments on investing in a stock if options are traded or not traded, assuming the stock price will rise over the next few months. 3) It provides data on the unit price, public offer price, and redemption price of a mutual fund scheme and asks to calculate the front-end and back-end loads. It also asks what return a mutual fund would need to earn for an investor to get a targeted return of 16%.

1. ARAVIND - 09901366442 – 09902787224
BANKING MANAGEMENT
Q.1) The exchange rate and forward rate of rupee against US dollar on 3rd
November,
2008 is given below:
Spot rate 1 US dollar Rs 45.36
One month forward 3.72%
Three months forward 3.27%
Six months forward 2.76%
Twelve months forward 2.26%
Calculate the forward rate, forward premium rate and swap rate from the given data.
Q.2) In May beginning you decide that shares in X Ltd. will rise over the next month or
so. The current price is Rs 100 and you hope that the shares will be at Rs. 150 by
the end of July. Give your comments if the Option is traded and if the option is not
traded. Make assumptions.
Q.3)
A) The unit price of TSS scheme of a mutual fund is Rs 10. The public offer price
(POP) of the unit is Rs 10.204 and the redemption price is Rs 9.80.
Calculate
i) Front-end load and
ii) Back-end load.

2. B) Mr. A can earn a return of 16% by investing in equity shares on his own. Now he
is considering a recently announced equity based mutual fund scheme in which
initial expenses are 5.5 percent and annual recurring expenses are 1.5 percent.
How much should the mutual fund earn to provide Mr. A a return of 16%
Q.4) The closing price of the stock of Veryfine Ltd. at the stock exchange for 20
successive days was as
ARAVIND - 09901366442 – 09902787224