Q$-1.$ Why investors are attracted to convertible securities and warrants. Explain how convertible securities values are determined. Describe how investors may be forced to convert bonds or preferred stock into common stock. $(2\mathrm{.}5$ Marks $)$

Q$-2.$ Describe the basic concept of an option. Distinguish between put and call options.

Define strike price, intrinsic value, and speculative premium. $(2\mathrm{.}5$ Marks $)$

Q$-3.$ Explain how commodities and financial futures can be used for speculation or for hedging.

Describe the different types of commodities and financial futures contracts that are available.

$(2\mathrm{.}5$ Marks $)$

Q$-4.$ Describe how currency futures and interest rate futures are currently utilized in a business environment. Explain the role of interest rate swaps as an alternative to futures. $(2\mathrm{.}5$ Marks $)$