project FIN403

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 3
Due Date: 23/11/2025 @ 23:59
Course Name: Investments

Course Code: FIN403

CRN: 12692

Assignment Title: Advanced Topics in Investment and
Risk Management

Semester: Second

Academic Year: 2025-26

Suggested Role Division
Student Name

Student ID

Assigned Part
Part A
Part B
Part C
Part D

Section Title

Bonds and Interest Rate
Expectations
Warrant Pricing and Investor
Behavior
Stocks vs. Options
Hedging with Financial
Futures

For Instructor’s Use only
Instructor’s Name: Dr. Samreen Akhtar
Assigned Part

Individual Section
Grade 8

Group effort
Grade 2

Presentation
Grade 10

Total
Grade 20

Level of Marks

Part A

High/Middle/Low

Part B

High/Middle/Low

Part C

High/Middle/Low

Part D

High/Middle/Low

Average Grade
(Group Overall)

Important Guidelines -Please read carefully
General Instructions
• Submit the assignment through Blackboard (Word format only) via the designated folder.
• Submissions via email or late submissions will not be accepted.

High/Middle/Low

• Make sure your work is clear, well‑structured, and includes your complete details on the cover page.
• Plagiarism or use of AI-generated content will result in a grade of zero.
• All answers must be typed in Times New Roman (size 12, double‑spaced).

Learning Outcomes:
After completion of Assignment, the students will be able to understand the following

CLO4:Demonstrate the valuation methods used for the valuation of the common forms of
debt, equity, property, and derivative securities.
CLO5:Illustrate asset models of a stochastic nature that are appropriate to the management of
liabilities.

The assignment consists of two parts:
Part 1: Assignment Questions (10 Marks)
A. Bond Selection and Interest Rate Expectations:
Should an investor who expects interest rates to decline seek low- or high-coupon bonds?
Relate your answer to duration and price sensitivity.
B. Warrant Pricing and Investor Behavior:
Why do investors tend to pay a smaller premium for a warrant as the price of the stock
goes up?
C. Stock vs. Options: Risk and Loss Analysis
Assume you wish to control the price movement of 100 shares of stock. You may buy
100 shares of stock directly or purchase a call option on the 100 shares. Which strategy is
likely to expose you to the larger potential dollar amount of loss? Which strategy is likely
to expose you to the larger potential percentage loss on your investment?
D. Hedging Strategies Using Financial Futures
How can using the financial futures markets for interest rates and foreign exchange help
financial managers through hedging? Briefly explain and give one example of each.

Part 2: Presentation (10 Marks):
Presentation Guidelines
Each group will deliver a short presentation (up to 12 minutes) summarizing their report and key
findings.
• Four marks will be allocated for the overall quality, organization, and clarity of the
presentation.
• Three marks will be awarded based on each student’s ability to clearly explain their own
section and respond to questions related to it.

•

Three marks will be awarded for each student’s understanding of the other sections
prepared by group members, including the introduction and conclusion, demonstrated
through answering related questions.

Note: Slides (according to the template shared) based on the report should be included as
images at the end of the report.

Answers

Introduction: …..
Part A: …..
Part B: …..
Part C: …..
Part D: …..
Conclusion: …..
References (10): ……….
Paste all the slides ( use the template already shared) prepared based on the report: ……

Course Name: Investments

Course Code: FIN403

CRN: 12692

Assignment Title: Advanced Topics in Investment and Risk Management

Semester: Second

Academic Year: 2025-26th

Student Name

Student ID

Assigned Part

Section Title

Part A

Bonds and Interest Rate Expectations

Part B

Warrant Pricing and Investor Behavior

Part C

Stocks vs. Options

Part D

Hedging with Financial Futures

For Instructor’s Use only
Instructor’s Name: Dr. Samreen Akhtar

Assigned Part

Presentation
Quality

Q&A – Own
Section

Q&A – Group
Work

Total Grade

Level of Marks

Part A

/4

/3

/3

/10

High/Middle/Low

Part B

/4

/3

/3

/10

High/Middle/Low

Part C

/4

/3

/3

/10

High/Middle/Low

Part D

/4

/3

/3

/10

High/Middle/Low

Outline

Introduction

Part A (1/2)

Part A (2/2)

Part B (1/2)

Part B (2/2)

Part C (1/2)

Part C (2/2)

Part D (1/2)

Part D (2/2)

Conclusion
Text
Text

Text
Text

Thank You

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