SESSION PLAN (40 Sessions)

Course Title: MANAGEMENT OF FOREX TRANSACTIONS

Course Code: MIB2303 Programme Name: MBA (IB)
Classroom contact hours: 40 hours Credit Units:
Tutorial Hours: Practical/Lab Hours: Nil
Self Study hours: 80 hours Faculty: Col K S Mohan MBA (FINANCE)

Sl.No. Module Contents No. of Reading Materials. Cases (if Additional

Sessions any) reading (if
any)

MFT-1 Module- Foreign Exchange 1 International Finance

1 Market. Definition,
Meaning and
Determination of Foreign
exchange. Theories.
MFT-2 Module- Convertibility. Basic
1 concept of Balance of
payment.
Management
4/ed – PG Apte (Megraw Hill)
1 International Finance
Management
4/ed – PG Apte (Megraw Hill)

MFT-3 Module- International Monetary 1 International Finance Foreign

1 system. Management Exchange C.
4/ed – PG Apte (Megraw Hill) Jeevanandan

Module- The impact of 1 International Finance

MFT-4 1 International Monetary Management
system on European 4/ed – PG Apte (Megraw Hill)
monetary system.
MFT-5 Module- International Finance 1 International Finance Foreign
2 Markets- Management Exchange C.
Introduction,terminology. 4/ed – PG Apte (Megraw Hill) Jeevanandan

MFT-6 Module- Classification, Role, 1 International Finance

2 Participants, Management
Location of 4/ed – PG Apte (Megraw Hill)
International Finance
Markets.
MFT-7 Module- Financial Intermediaries 1 International Finance
2 in International Finance Management
Markets. 4/ed – PG Apte (Megraw Hill)

MFT Module- Changing Financial 1 International Finance

-8 2 Landscape of Management
International Finance 4/ed – PG Apte (Megraw Hill)
Markets.
MFT- Module- Introduction to 1 International Finance
9 3 Derivatives. Management
4/ed – PG Apte (Megraw Hill)

MFT- Module- Derivatives- Products, 1 F & O by John C Hull. SEBI Manual

10 3 participants and Options and Futures.An Indian
functions. Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Types of Derivatives 1 F & O by John C Hull.

11 3 -Futures, Options and Options and Futures.An Indian
Swaps. Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Exchange traded Vs OTC 1 F & O by John C Hull.

12 3 derivatives. Options and Futures.An Indian
Perspective.D.C.Patwari&
Bhargava.
F & O by John C Hull.
Options and Futures.An Indian
Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Derivatives markets in 1 F & O by John C Hull.

 13 3 India. Options and Futures.An Indian
Perspective.D.C.Patwari&
Bhargava.

MFT- Module- NSE-Trading 1 F & O by John C Hull.

14 3 Mechanism, Members, Options and Futures.An Indian
Turnover, Clearing, Perspective.D.C.Patwari&
Settlement. Bhargava.

MFT- Module- Risk Management 1 F & O by John C Hull.

15 3 System in NSE. Options and Futures.An Indian
Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Forward -Introduction 2 F & O by John C Hull.

16-17 4 Delivery, Settlement and Options and Futures.An Indian
default risk of Forward Perspective.D.C.Patwari&
Contracts. Bhargava.
F & O by John C Hull
MFT- Module- Termination of a forward 1 F & O by John C Hull.
18 4 contract. Options and Futures.An Indian
Perspective.D.C.Patwari&
Bhargava.

MFT- Module- The structure of Global 1 F & O by John C Hull.

19 4 Forward Markets. Options and Futures.An Indian
Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Types of forward 2 F & O by John C Hull.

20-21 4 contract. Options and Futures.An Indian
Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Futures - An overview of 1 F & O by John C Hull. Problems

22 4 history of futures Options and Futures.An Indian
markets. Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Definition of Futures, 2 F & O by John C Hull.

23-24 4 Difference between Options and Futures.An Indian
Futures and Forwards. Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Organisation of 1 F & O by John C Hull.

25 4 Exchanges, Clearing Options and Futures. An Indian
house mechanism, Perspective.D.C.Patwari&
Contract Specifications, Bhargava.
Types of Margins,
Trading process.
MFT- Module- The relationship between 1
26 4 future and spot price,
Basis, Cost of carry,
Contango,
Backwardation.

MFT- Module- The motives behind 1

27 4 Futures and types of
Futures.

MFT- Module- Optional Contracts – 2 F & O by John C Hull. Problems

28-29 5 Terminology, Pay-off, Options and Futures. An Indian
Option Pricing, Perspective.D.C.Patwari&
Investment Strategies. Bhargava.
MFT- Module- Option Clearing 2 F & O by John C Hull.
30-31 5 Corporation. Trading Options and Futures. An Indian
Strategy. Put Call parity. Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Option Valuation – Black 2 F & O by John C Hull. Problems

32-33 5 and Scholes Model. Options and Futures. An Indian
Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Option Valuation – 2 F & O by John C Hull.

34-35 5 Binomial Model. Options and Futures. An Indian
Practical exercise Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Swap Contracts. 2 F & O by John C Hull. Problems

36-37 5 Options and Futures. An Indian
Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Swap Contracts. – 2 F & O by John C Hull.

38-39 5 Interest rate swaps. Options and Futures. An Indian
Perspective.D.C.Patwari&
Bhargava.

MFT- Module- Swap Contracts- 1 F & O by John C Hull.

40 5 Currency swaps and Options and Futures. An Indian
practical exercise. Perspective.D.C.Patwari&
Bhargava.

Note: The scope of the subject is vast and the matter is found in different
books, therefore, it is not possible to specify chapter wise reading.

Text Book

1. International Finance Management

– PG Apte (Megraw Hill)
1. F & 0 by .John C Hull- Pearson Education! PHI
2. Options and Futures. An Indian Perspective. D.C.Patwari& Bhargava.
3. Khan & Jain- Financial Services;
4. Financial Markets and Institutions by Dr S Guruswamy Thomson
S.S. Kumar. PHI Publication.
5. F & 0 Vohra & Bugri
6. Foreign Exchange C. Jeevanandan

Suggested Reference Books:

1. Indian Financial System by M Y Khan
2. Indian Capital Market by V A Avadhani
3. Indian Financial System by H R Machiraju, Vikas Publication.
4. Financial Institutions Markets by LM Bhole
5. Managing Financial Institutions by Srivastava
6. Indian Financial System by Vasant Desai
7. National Stock Exchange by R H Patil
8. Financial Institutions Markets by Scott10. Futures and Options by Vohra and Bagri.
11. Security Analysis and Portfolio Management by Fisher & Jordon
12. Financial Derivatives by Keith Redhead
13. Gardener Series on Options, Futures and Swaps
14. Downloaded study material for NCFM Cash and Derivatives market.
15. Derivatives by Strong.
16. Financial Markets and Institutions by Dr S Guruswamy.
17. Derivatives by David and Thomas.
18. AMFI Study material.
19. Foundation of Financial markets and Institutions 3rd Ed by Frank J Fabocci
Pearson Ed I PHI.
20. F & 0 in risk management by Wastham 2nd ed Thomson.
21. Fixed income markets by Suresh Sundaresan - Thomson
22. Financial Markets and services - Gordon & Natarajan
23. F & 0 for dummies -- Joe Duarte [v1DWiley India Pvt Ltd.
24. Financial Derivatives S L.Gupta - PHI
25 Ravi Kishore -- Taxman. Publication. Financial Management.
26 Case Studies in Finance- R F Bruner.
27. Fixed Income Markets- Suresh Sundaresan.
 WEBSITES
1. www.amfiindia.com
2. nseindia.com
3. bseindia.com
4. ncdex.com
5. navindia.com
6. irda.org
7. appliedderivatives.com
8. sec.gov.us
9. sebi.gov.in
10. rbi.org.in
11. icicidirect.com -Derivatives study material.
12. moneypore.com
13. myiris.com
14. personalfu.com
15. invesopcdia.com
16. equitymastel"s.com
17. hdfcsec.com
18. 5paisa.com
19. sharkhan.com

Important Note:

1) Encourage students to appear for NCFM exams.

2) Guest lectures
a. Deriva tives
b. F&O
c. Swaps contracts
d. Commodities
3) Visit to stock market / Broking house
4) Stock market game for all the finance specialization students.

Only the latest edition be used as a reference

text.

Periodicals

1) News papers and finance periodicals like

a. Economic times
b. Business line
c. Financial express

Cases and problems to be drawn from the financial dailies with current data and
current problems.

Semester-end Exams Ouestion Paper Pattern:

Please note that 40% weight would be given to Financial Markets part, 10% weight
would be given to Financial Institutions part and 40% weight would be given to
Financial Derivatives part and 10% for commodities part.

Section A : Objective type Questions(questions should be asked as per weight)

(4 out of 5 questions, each carries 6 marks) 24

Section B: Short type questions (questions as per weight) 20

(2 out of 3 questions each carry 10 marks)

Section C: Long type question/Case Study (practical problems) 60 marks

(One case study carries 16 marks)