iBS
Hogeschool Van Amsterdam
Amsterdam University of Applied Sciences
Amsterdam International Business School
Fraijlemaborg 133. 1202 CV
Amsterdam Z. O AMSTERDAM
020 – 523 63 11
Financial Risk Management
Final Exam S2-T4
Target Students
This exam is offered: to exchange students, to the students with a minor in International Finance
and to the third and fourth year IBS students.
Exam (BOE-Code) : FRMVH2ES03; FRMVH2MN01
Classes : 3IBMEX, IBM-Rest, MINFI, MIN-Rest.
Date : June 5, 2013
Time : 17:15 – 19:15 (2 hours)
Lecturer : Jalal Mrabti & Erik Rengelink
The exam consists of : 3 Parts (5 numbered pages including the cover page. Please make
sure your copy is not missing pages)
The grade structure is:
Part 1 2 3 Grade Calculation Max Grade
Points
16.5 15.5 18 10
General Exam Instructions
1. Write your name and registration number clearly on all documents of the exam.
2. Put your ID on your table. For ID you may use: passport, driving license, or Have-registration card.
3. You have to report any incompleteness regarding the questions and problems during the test to your invigilator
only.
4. The use of HES calculator is permitted. Graphical calculators are NOT allowed.
5. The use of paper not provided by the supervisor is prohibited. Ask the invigilator, when you need additional scrap
paper.
6. The set of questions and problems cannot be taken home. When you have finished the exam, you have to hand in
all worksheets.
7. You can only leave your table if the invigilator allows you to. In case of any question you have to warn the invigilator. You
have to remain seated for the first 30 minutes of the exam.
, Copyright © 2013. IBS Amsterdam
Amsterdam University of Applied Sciences. Hva
Part 1: Multiple choices Points: 15
1. An increase in the interest rate leads to:
a. An increase in the present value of the outstanding long term loans
b. An increase in the cost of short term funding
c. A decrease in the cost of funding
d. An increase in the operational risk level
2. Value at risk answers which question:
a. What is the most a company can expect to lose in dollars over the next day
b. What is the minimum a company can expect to lose over the next month
c. What is the average expected loss a company could have over the next year
d. What is the most a company can expect to lose in dollars today.
3. A yield curve with a positive slope indicates:
a. A falling inflation expectation
b. High risk level of long term loans
c. An negative expectation of economic growth
d. High risk level of short term loans
4. Mr. A is speculating in a 3-month Euribor Future (with €1 million euro-deposit). His expectation
is that short and long run interest rates will fall soon. So it is in his best interest to:
a. Buy Sep Euribor –Futures and sell Dec Euribor –Futures
b. Sell Sep Euribor –Futures and buy Dec Euribor –Futures
c. Buy Sep Euribor –Futures
d. Sell Sep Euribor –Futures
5. If the efficient market theory holds (markets are efficient), then the financial analyst should rely
on:
a. Only fundamental analysis
b. Only technical analysis
c. Both technical and fundamental analysis
d. Only scenario analysis
6. Which of the following costs are not covered by the Cost of Carry:
a. Transportation cost
b. Insurance cost
c. Storage cost
d. Capital cost
Page 2 of 8
Hogeschool Van Amsterdam
Amsterdam University of Applied Sciences
Amsterdam International Business School
Fraijlemaborg 133. 1202 CV
Amsterdam Z. O AMSTERDAM
020 – 523 63 11
Financial Risk Management
Final Exam S2-T4
Target Students
This exam is offered: to exchange students, to the students with a minor in International Finance
and to the third and fourth year IBS students.
Exam (BOE-Code) : FRMVH2ES03; FRMVH2MN01
Classes : 3IBMEX, IBM-Rest, MINFI, MIN-Rest.
Date : June 5, 2013
Time : 17:15 – 19:15 (2 hours)
Lecturer : Jalal Mrabti & Erik Rengelink
The exam consists of : 3 Parts (5 numbered pages including the cover page. Please make
sure your copy is not missing pages)
The grade structure is:
Part 1 2 3 Grade Calculation Max Grade
Points
16.5 15.5 18 10
General Exam Instructions
1. Write your name and registration number clearly on all documents of the exam.
2. Put your ID on your table. For ID you may use: passport, driving license, or Have-registration card.
3. You have to report any incompleteness regarding the questions and problems during the test to your invigilator
only.
4. The use of HES calculator is permitted. Graphical calculators are NOT allowed.
5. The use of paper not provided by the supervisor is prohibited. Ask the invigilator, when you need additional scrap
paper.
6. The set of questions and problems cannot be taken home. When you have finished the exam, you have to hand in
all worksheets.
7. You can only leave your table if the invigilator allows you to. In case of any question you have to warn the invigilator. You
have to remain seated for the first 30 minutes of the exam.
, Copyright © 2013. IBS Amsterdam
Amsterdam University of Applied Sciences. Hva
Part 1: Multiple choices Points: 15
1. An increase in the interest rate leads to:
a. An increase in the present value of the outstanding long term loans
b. An increase in the cost of short term funding
c. A decrease in the cost of funding
d. An increase in the operational risk level
2. Value at risk answers which question:
a. What is the most a company can expect to lose in dollars over the next day
b. What is the minimum a company can expect to lose over the next month
c. What is the average expected loss a company could have over the next year
d. What is the most a company can expect to lose in dollars today.
3. A yield curve with a positive slope indicates:
a. A falling inflation expectation
b. High risk level of long term loans
c. An negative expectation of economic growth
d. High risk level of short term loans
4. Mr. A is speculating in a 3-month Euribor Future (with €1 million euro-deposit). His expectation
is that short and long run interest rates will fall soon. So it is in his best interest to:
a. Buy Sep Euribor –Futures and sell Dec Euribor –Futures
b. Sell Sep Euribor –Futures and buy Dec Euribor –Futures
c. Buy Sep Euribor –Futures
d. Sell Sep Euribor –Futures
5. If the efficient market theory holds (markets are efficient), then the financial analyst should rely
on:
a. Only fundamental analysis
b. Only technical analysis
c. Both technical and fundamental analysis
d. Only scenario analysis
6. Which of the following costs are not covered by the Cost of Carry:
a. Transportation cost
b. Insurance cost
c. Storage cost
d. Capital cost
Page 2 of 8
