1. 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-Scholes Merton model. Marks (25)

Assignment: 1

As an IPO Senior Analyst working for Namibia Asset Management (NAM), you are required by your Line Manager to do a company analysis (period 2016-2021) on the Mobile Telecommunications Limited (MTC) which is anticipated to list on the Namibian Stock Exchange (NSX) on the 19th November 2021. You are expected to provide detailed recommendations to support whether potential investors (Namibian public) should either BUY, HOLD or SELL MTC shares. Furthermore, with supportive evidence, indicate whether MTC applied the NamCode or not by clearly indicating the area (specific NamCode sections) of either compliance and/or non-compliance. Lastly, with respect to the new Financial Institutions and Markets Act (FIMA), that is due to be published by the Namibian parliament; you are required to indicate whether and how the FIMA will affect MTC and indicate clearly the respective sections of the FIMA if any. (50)