Lesson Plan

 

Week

Topics and Readings

1

An Overview of International Finance

     2

The Foreign Exchange Market

3

The Foreign Exchange Market

4

The Balance of Payment and Effective Exchange Rate . Factors Affecting the Balance of Payment Position, The real effective exchange rate

5

The euro currency market and international banking.

6

International Banking regulations and the Basel accord.

7

Exchange Rate Determination: Some stylized facts about exchange rate, Factors affecting demand and supply, speculation in the spot foreign exchange market

8

The international Monetary system and the exchange rate argument. Criteria, classes, different parallel systems of exchanges.

 

Mid-term exam

9

International Arbitrage and IRP

10

Purchasing power parity, the monetary model of exchange rates, determination of bid offer spread and the forward spread.

11

Exchange rate forecasting, Technical Analysis and Trading rules

12

Exchange rate forecasting, Technical Analysis and Trading rules

13

Currency derivatives

14

Comparison of forward and future market, specification of currency futures, interest rate swap

15

Foreign exchange risk exposure: definition, value at risk, definition of exposure

16

Foreign exchange risk exposure: Translation, economic and transactional exposure.