FIN 403 Saudi Electronic University Investment Worksheet


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College of Administrative and Financial Sciences
Assignment -2
Academic Year: 1441/1442 H
Course Name: Investments
Student’s Name:
Course Code: FIN403
Student’s ID Number:
Semester: I
CRN: 11171
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks
Obtained/Out of
Level of Marks: High/Middle/Low
The Assignment must be submitted on Blackboard (WORD format only) via allocated
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 2
Submission Date by students: 16/11/2020
Place of Submission: Students Grade Centre via blackboard.
Weight: 03 Marks
Assignment Purposes/Learning Outcomes:
LO-2. Evaluate the valuation methods used for valuation of the common forms of debt,
equity, property and derivative securities. ( 2.1)
Assignment Question(s):
(Marks 4)
Q.1. Comment on the statement, “It is possible that a bond with a shorter
maturity than another bond may actually have a longer duration and be more
price sensitive to interest rate changes.” Explain why a bond with a shorter
maturity than another bond could have a longer duration. ( 2 Marks)
Q.2.Why would an investor be interested in convertible securities? (What do
they offer to the investor?) What are the disadvantages of investing in
convertible securities? ( 1 Mark)
Q.3.What is meant by the exercise or strike price on an option. What factors
influence a speculative premium on an option? ( 1 Mark )

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Explanation & Answer:
3 questions




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