Concepts of financial market trading (United kingdom)

Context

3150-3850 (excluding references).
• Write a report that answers the following questions.
• Write your name and the date at the top of your report.
• Make sure to number all of your answers to correspond with the relevant question numbers.
• Make sure to include a References section at the end of your paper that cites each source of information used in your answer.
Required; Summary (200-250 words)
This is for the UK, briefly describe most commonly traded financial markets and their importance to the economy
Include in your summary an overview of the current economic position, including the balance of trade and the role of the Central Bank.
The summary must be included. Your answers to tasks 1 & 2 must relate to the United Kingdom.

Assignment tasks

Task 1
700 Words
Evaluate the impact of the UK's economic cycle on the long-term trends of financial asset prices.
You are required to provide examples to support your answer.

Task 2
700 words
Analyse how the UK's 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.

Task 3

1050 Words
(a) Analyse THREE different types of investment risk
(b) Examine how the impact of each risk can be minimised
(15 marks) (15 marks)
Task 4

(a) Explain how and where options are traded.
(b) Justify the use of options for speculation and hedging. You are required to provide examples to support your answer.

(c) Explain the differences between the futures trading execution process and Over- the-Counter (OTC) trade execution.