What are Financial Markets.

1. Discuss the different types of financial Markets and their role.
2. What is a Financial Derivative.
3. Discuss the different types of Derivatives, their role and their advantages and disadvantages.
4. Discuss the differences between forward, futures, and options contracts.
5. Explain the two types of options and their roles, advantages and disadvantages with possible examples.
6. Discuss the three types of traders and state the advantages and disadvantages with possible examples.
7. What are the dangers of derivatives and the possible effect.
8. Discuss and give supporting reasons whether you feel financial markets and derivatives are worth it and why, in comparison to other investments.

Answer rating: 100% (QA)

1 Financial Markets are a place where buyers and sellers of financial assets come together to exchange or trade They can be divided into two categories a primary markets where new securities are issue... View the full answer