Investments Assignment 3

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FIN403-Assignment-3.docx

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College of Administrative and Financial Sciences

Assignment -3

Academic Year: 1441/1442 H

Course Name: Investments

Student’s Name:

Course Code: FIN403

Student’s ID Number:

Semester: 2nd

CRN: 21946

For Instructor’s Use only

Instructor’s Name:

Students’ Grade: Marks Obtained/Out of

Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

· Students must mention question number clearly in their answer.

· Late submission will NOT be accepted.

· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks.

· All answered must be typed using Times New Roman (size 12, double-spaced) font.

· Submissions without cover page will NOT be accepted.

Assignment -3

Submission Date by students: 9/4/2021

Place of Submission: Students Grade Centre via blackboard.

Weight: 05 Marks

Assignment Purposes/Learning Outcomes:

CLO-2-Explain the Different Types of Investments. ( PLO-1.3)

CLO-3. Demonstrate investment arrangements as part of the process for implementing an investment strategy. ( PLO- 2.2)

CLO-5. Illustrate asset models of a stochastic nature that are appropriate to the management of liabilities. ( PLO-2.4)

Assignment Question(s): (Marks 5)

Q.1. What is meant by the exercise or strike price on an option? What factors influence a speculative premium on an option? ( 2.5 Marks )

Q.2. What is the basic difference between a closed-end fund and an open-end fund? Define net asset value. Do closed-end funds normally trade at their net asset value? What about open-end funds? ( 2.5 Marks )

GOOD LUCK