Answer Happy

With empirical evidence, compare and contrast Exchange Traded
Market and Over-the-Counter Market? Assuming you are working for
the Bank of Namibia Financial Markets Department as a Senior
Derivative Analyst, which Derivative instrument (s) would you
recommend for the BoN and on which market would that instrument (s)
be traded on? Marks (25)
2. With supportive evidence, which Derivative instrument (s) would
you recommend to high risk tolerance investor and why? Marks
(25)
3. With practical examples demonstrate how Derivatives can be used
for Risk Management purpose and how Derivatives market participants
such as Speculators, Hedgers and Arbitrageurs utilizes this
instrument? Marks (25)
4. Compare and contrast the following Derivatives Strategies by
demonstrating with practical examples and making appropriate
recommendations to a Risk averse Investor: 1. Forwards Strategies;
2. Swaps Strategies; 3. Futures Strategies; 4. Currency Management;
5. Options Strategies; and 6. Binomial Options Pricing Model vs
Black