Required Summary (200-250 words)
Select a country of your choice, briefly describe most commonly traded financial markets and
their importance to the economy, including an overview of the current economic position, the
balance of trade and the role of the Central Bank.
Your answers to Tasks 1 & 2 must then relate to your chosen country.
Answers:
Evaluate the impact of your country’s economic cycle on the long-
term trends of financial asset prices. You are required to provide
examples to support your answer. (20 marks)
Using your selected country, analyse how financial markets have
been impacted by a recent political event. Include charts to
illustrate your analysis. Your answer should include a brief outline
of the political event at the start of your answer.
(20 marks)
(a) Analyse THREE different types of investment risk (15 marks)
(b) Examine how the impact of each risk can be minimised
(15 marks)
(a) Explain how and where options are traded. (10 marks)
(b) Justify the use of options for speculation and hedging. You
are required to provide examples to support your answer.
(10 marks)
(c) Explain the differences between the futures trading execution
process and Over-the-Counter (OTC) trade execution.
(10 marks
