Major Assignment 10 marks (Part 1 and Part 2)

Viva 10 marks (Part 1 and Part 2)

PART 1:

1. Collect consecutive six months spot and future share prices data of the assigned companies

2. Find the hedge ratio between spot and future prices

3. Assume that you have a long position of 3000 shares in the assigned company, then find the number of future contracts (N) to hedge your position

4. Tell whether short-selling or taking a long-position will hedge your existing position

5. Calculate profit or loss right after the six months period (the period which you have used for calculating the hedge ratio)

6. Tell whether your position is fully hedged or not based on the findings in step 5

Name Companies

Sayeda Tayyaba Shah PPL

Adil Raza SNGP

Irfan Ullah PIOC

Palwasha Jamshed OGDC

Sundus Sheraz FATIMA

Mian Umar Sohail ATRL

Mohammad Nabi DAWH

Fazlullah NCL

Arshid Ali FFC

Asim Ullah FFBL

Sayed Fayez Khan UBL

Hameeda BAFL

Helina AHCL

Amanat Khan FCCL

Zarnageen Naseer DGKC

Kashmala Mukhtiar EFOODS

Ali Mohsin Jadoon MCB

Faizan Pervaiz NBP

Muhammad Ilyas SSGC

Muhammad Hassnain AICL

Imrann Ullah PSO

Rahim u Din Khan Any (other than above)

Abdul Basit Irfan Any (other than above)

PART 2:Search and provide the answers of the followings:

1. Highlight different aspects of future contracts on KSE, such as their rules, eligible scripts, settlement process,

short-selling, margin requirements, etc.

2. Pakistan Mercantile Exchange Ltd., what it is, which commodities are traded on it, how to trade on it, its rules for

trading and settlement, who is eligible to trade on it, etc.

3. Is risk management practiced in Islamic financial institutions (IFI)? What is the State Bank of Pakistan guidelines

for risk management in IFI?

4. What is Basel Accord? What are its three main pillars?