Compare the impact of monetary policy under fixed exchange rates with those under flexible exchange rates.

Discuss the Black-Scholes formula on derivative pricing.

Explain the need for, and role of depository systems in secondary markets. Explain the concept of custodial services.

Critically examine the major theories that have been put forward to explain the term structure of interest rates

Discuss the Markowitz theory of efficient portfolio selection. How does the CAPM theory build on it?

Describe the nature of the financial system in modern economy giving the important types of constituent institutions, markets and instruments. Explain the concept of flow- of-funds in the financial markets.

Discuss the distribution of ‘excess beyond a threshold’

Discuss the concept of ‘benefit reserves’ with equations for different type of insurance policies.

Show that the probability of a life alive at age ‘x’ dying before the age ‘x + 1’ is the ‘weighted average of the force of mortality’

Describe the concepts of ‘hazard function’ and ‘cumulative hazard function’.

Outline the properties of an ‘accumulation function’ with illustrations

Specify the features of ‘parametric survival models’. Describe the extended versions of ‘parametric survival models’.

Apply Chebychev’s inequality to: (i) arrive at ‘Chebychev’s bounds’ for the sum of ‘n’ Bernoulli variables; and (ii) state the Law of Large Numbers (LLN) in general.

Differentiate between deterministic and stochastic chain reserving techniques.

Discuss the special features of the insurance sector which necessitates its regulation?

State the limitations of the Extreme Value Theory (EVT)

What are ‘Yield Curves’? Explain with examples.

Write a note on Stopping Times and Martingales with example

Explain any two models used in Stochastic Claims Reserving.

Discuss the applications of Chebyshev’s Theorem.