Dear Student, Please find the assignment for Advanced Commodities Markets. There are five questions. Following are the instructions for the same:-

Each question is of 20 marks.

No word limits for the questions.

All questions are compulsory.

You are requested to submit the soft copy of the solution by 14th July 2015.

Question:- 1) What are derivative contracts? Explain the fundamental difference between futures and options. 2) The characteristic of commodity futures are different from those of equity futures. What are the difference? 3) Explain the correlation between gold commodity and other asset classes such as equity and currency. 4) What are unique kind of margins that are charged in commodity futures to control artificial position building and volatility? 5) Explain how the theoretical forwards are calculated in commodity futures and also explain the optimal hedge ratio citing reasonable examples.

Thanks and Regards,

Komal Agarwal

Academic Co-ordinator

Ph: 022-22728459

Mob: 9769356370

BSE Institute Limited, P J Towers, Dalal Street, Mumbai -400001, India

www.bsebti.com

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