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Second Internal Examination 2016

FM - 405

International Finance

1. What is Interest Rate parity? (5)2. Do you believe that NPV rule is better than IRR rule for apital !u"#etin#

pro$e%ts?(5)&. Write short notes on the follo'in# (5&*15)

+pe%ial Dra'in# Ri#hts

Pur%hasin# po'er parity

,orei#n -%han#e /ar0et

. What is !alan%e +heet he"#e? (5)