Reference no: EM132859371 , Length: word count:2000

GAC6011 Capital Market and Derivatives - Gulf College

Programme Title - A&F

Assessment Task
This assessment requires the students to complete two tasks equivalent to 2000 words.

Task 1: 1000 words

The International Financial Market is the place where financial wealth is traded between individuals (and between countries). It can be seen as a wide set of rules and institutions where assets are traded between agents in surplus and agents in deficit and where institutions lay down the rules. Analyse the role of capital flows in international financial markets and critically evaluate the impact of these investments in the development of growing economies.
The discussion should include the following:
- Write an introduction with a proper overview of international financial market. (150 words )
- Critically discuss the role of capital flows in international financial markets. (350 words )
- Critically analyse the impact of these investments in the development of growing economies. (350 words )
- Proper conclusion giving summary and your opinion. (150 words )

Task 2: 1000 words, 50 marks

Hedging is one of the common strategies used by corporations to deal with financial risks. The use of hedging as a strategy for risk management is still a controversial topic with pro and against theories. Investigate the financial hedging strategies and evaluate their contribution in the risk management of international firms.

The discussion should include the following:
• Write an introduction with a proper overview of financial hedging. (150 words )
• Critically discuss the reasons, types and strategies of financial hedging. (350 words )
• Critically evaluate the hedging contribution in the risk management of international firms. (350 words)
• Proper conclusion giving summary and your opinion. (150 words )

Attachment:- Capital Market and Derivatives.rar