Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Format For Instruction Plan [for Courses with Lectures and Tutorials ]
TextBook
Other Readings
Sr. No. Jouranls atricles as compulsary readings (specific articles, Complete reference)
12 The Indian Foreign Exchange Market and the equilibrium real exchange rate of rupee "http://openlib.org/home/ila/PDFDOCS/PatnaikPauly2001_indianforex.pdf"
Relevant Websites
14 www.moodys.com , www.standardandpoors.com The web site contains country risk ratings and analyses.
15 www.bis.org/cbanks.htm Web site of the bank for international settlements, which takes you directly
to links with the various central banks of the world.
16 www.oecd.org/std/nadata/htm Contains data on PPP exchange rates for the OECD countries going back
to 1970. The PPP exchange rate data is presented in spread sheet that can
be saved.
17 www.economist.com The Economist contains stories on economic and political situations of
countries, along with various national and international economic and
financial data.
Part 1
Week 1 Lecture 1 Financial Management In Global Context : Introduction, Emerging Book :6,ch-1
Challenges, Responsibilities Of Finance Managers.
Lecture 2 Goals For International Financial Management, Globalisation Of World Book :1,Ch-1 Mini Case: Nike's
Economy : Recent Trends Decision & Case : General
electric globalises
Lecture 3 Evolution Of International Monetary system In brief -Bimetallism, Book :1,Ch-2
Classical Gold Standard, Interwar Period, Bretton Woods System,
Flexible Exchange Rate Regime
Week 2 Lecture 4 Current Exchange Rate Arrangement, Role Of IMF Book :1,Ch-2 HomeWork 1 Allocation Case : Blades Inc.
(running case)/
Pg.99-100/ Ref.6
Lecture 5 Introduction : Euro Monetary System, Benefits & Costs Of EMU, Book :1,Ch-2 Mini case : Will The
ADRs & GDRs, SDRs. United Kingdom Join The
Euro Club
Lecture 6 Balance Of Payment Accounting, BOP Accounts ( Current Account, Book :1,Ch-3 (Text Book) Articles : Ref.10 & Case :
Capital Account, Statistical Discrepancy, Official Reserve Account) Ch-5(Ref-2) The Bank of Korea
reassesses its Reserve
(Ref-2, Ch-5)
Week 3 Lecture 7 Global Financial Markets: Domestic & Offshore Markets, Euro Markets Book :1,Ch-5 (text Book) Ch-6 Ref- 10 & 8
and its evolution ( Ref-3)
Lecture 9 Spot Rate Quotations: Direct and Indirect quotations, Bid-Ask Spread, Book :1,Ch-5
Spot Foreign Exchange Market, Forward Foreign Exchange Market.
Week 4 Lecture 10 Exchange Rates, Cross Exchange Rates Quotations, Triangular Book :1,Ch-5 HomeWork 1
Arbitrage Submission
Part 2
Week 4 Lecture 11 Forward Cross Exchange Rates, Forward Point quotations. Book :1,Ch-5 Mini Case: Turkish Lira
and Purchasing Power
Parity (Ref-1, Pg. 159)
Lecture 12 Determination of Exchange Rates: Setting the equilibrium spot Rate, Book :2,Ch-2 Case: Blades Inc (Pg.99,
Expectations and asset pricing model of exchange rates Ref.6)
Week 5 Lecture 13 Determination of Exchange Rates: Fundamentals of Central Bank Book :2,Ch-2 HomeWork 2 Allocation Mini Case: Shrewsbury
Intervention, The Equilibrium Approach to exchange rates. Herbal Products Ltd.
(ref-1)
Lecture 14 Interest Rate Parity: Parity conditions, Covered Interest Rate Arbitrage Book :1,Ch-6 Case: Blades Inc (Pg.194)
Lecture 15 Interest Rate Parity: Uncovered Interest Rate Arbitrage, Reasons for Book :1,Ch-6
Deviation from Interest Rate Parity.
Week 6 Lecture 16 Parity Conditions in International Finance: Law of one Price, Book :1,Ch-6 Ref-12
Purchasing Power Parity, PPP and the Real exchange Rate
Lecture 17 Parity Conditions in International Finance: Fisher's Effect, Book :1,Ch-6
International Fisher Effect, Forecasting exchage rates
Lecture 18 Country Risk and Political, Social and Economic Risks Book :3,Ch-31(Ref-3) HomeWork 2
Ch-6(Ref-2) Submission
Week 7 Lecture 19 Need for Risk Evaluation, Political Risk Analysis, Managing Political Book :3,Ch-31(Ref-3) Quiz 1
Risk Ch-6(Ref-2)
Lecture 20 Introduction to foreign exchange risk Exposure: Meaning of Book :1,Ch-8 9 10
Transaction, Translation, Operating and Economic Exposure. (Only
introduction to the concept)
Lecture 21 Revision of Syllabus before MTE
MID-TERM
Part 3
Week 8 Lecture 22 Futures on foreign exchange: Future contract some preliminaries, basic Book :1,Ch-7
currency future relationship, Eurodollar interest rate future contracts.
Lecture 24 Options on foreign Exchange: Meaning, How options work Book :1,Ch-7 Ref-11
Week 9 Lecture 25 Options on foreign Exchange: Options on spot, options on futures, Book :5,Ch-10
and future style options, price quotations,
Lecture 26 Options on foreign Exchange: Elementary option strategies. Book :6,Ch-5
Lecture 27 Options on foreign Exchange: Hedging with currency options, Option Book :1,Ch-7(Ref-1)
Pricing (Binominal Model) Ch-8(Re-2)
Week 10 Lecture 28 Interest Rate Derivatives: Interest Rate Futures, Short term & Long Book :5,Ch-9 HomeWork 3
Term Interest Rate Futures Submission
Lecture 29 Interest Rate Derivatives: Forward forwards, Forward Rate Agreement, Book :2,Ch-9 HomeWork 4 Allocation
Eurodollar Futures
Part 4
Week 10 Lecture 30 Swaps: Types of swaps, swap bank, Swap market quotations, LIBOR, Book :1,Ch-14
QSD
Week 11 Lecture 31 Interest Rate Swaps: Basic Interest Rate Swap, Fixed for floating Book :1,Ch-14 Swaps: Ref-7
interest rate swap, Picing the basic Interest rate swap.
Lecture 32 Currency Swaps: Basic Currency Swap, Variation of Basic Currency Book :1,Ch-14 Mini Case: The Centralia
and Interest Rate Swap, Risk of Interest Rate and Currency Swaps Corporations Currency
Swap (Ref-1, Pg. 355)
Lecture 33 Economic Exposure, Determinants of economic exposure, Managing Book :1,Ch-9 Term Paper 1
the economic exposure Submission
Week 12 Lecture 34 Management of Transaction Exposure: Meaning of Transaction Book :1,Ch-8 HomeWork 4
Exposure, Forward market Hedge, Money Market Hedge Submission
Lecture 35 Management of Transaction Exposure: Option Market Hedge, Cross Book :1,Ch-8 Case Study: Chase
Hedging Minor Currency Exposure, Hedging Contingent Exposure. Options, Inc.: Hedging
foreign currency
exposure through
currency options.(ref-1,
Pg. 215)
Lecture 36 Management of Transaction Exposure: Hedging Recurrent Exposure Book :1,Ch-8 (Ref-1)
with Swap Contracts, Hedging through Invoice Currency, Lead/Lag Ch-10(Ref-2)
strategy, Exposure netting.
Spill Over
Week 14 Lecture 40 Financial structure and international debt Book :4,Ch-13
Homework 2 Numerical/Practical problems on Interest Rate Parity, Exchange Rate Determination, PPP, Test will Individual
be taken based on this assignment.
Homework 1 A group of 2 students will be asked to visit the website of company assigned by the Group
instructor.Eamine its international business activities like:What importance does it plce on
international business ?Is its foreign activities increasing over time?What % of its sales & income
comes from exports,etc
Homework 3 Numerical/Practical problems on FOREX, Futures, Options Test will be taken based on this Individual
assignment.
Homework 4 Numerical/Practical problems on, Swaps, Transaction Exposure, Operating Exposure. Test will be Individual
taken based on this assignment.
*Normally all the homeworks shall be submitted online but in special courses where homeworks cannot be submited online , the insructor can edit the mode of submission while
entering the IP Details
Quiz 2 15 30
Term Paper 1 25 25
Homework 3 4 15 45
Total :- 100
* In ENG courses wherever the total exceeds 100, consider x best out of y components of CA, as explained in teacher's guide available on the UMS
Tutorial 1 IMF & its evolution, EMU & its evolution Case analysis
After Mid-Term
Tutorial 8 Futures on FOREX Problem solving