Course 2006-2007 a.y.

8193 - INTERNATIONAL FINANCIAL MARKETS


GM-LS - MM-LS - OSI-LS - AFC-LS - CLAPI-LS - CLEFIN-LS - CLELI-LS - CLEACC-LS - DES-LS - CLEMIT-LS - CLG-LS

Department of Finance

Course taught in English

Go to class group/s: 31
GM-LS (6 credits - II sem. - AI) - MM-LS (6 credits - II sem. - AI) - OSI-LS (6 credits - II sem. - AI) - AFC-LS (6 credits - II sem. - AI) - CLAPI-LS (6 credits - II sem. - AI) - CLEFIN-LS (6 credits - II sem. - AI) - CLELI-LS (6 credits - II sem. - AI) - CLEACC-LS (6 credits - II sem. - AI) - DES-LS (6 credits - II sem. - AI) - CLEMIT-LS (6 credits - II sem. - AI) - CLG-LS (6 credits - II sem. - AI)
Course Director:
MANUELA GERANIO

Classes: 31 (II sem.)
Instructors:
Class 31: MANUELA GERANIO



Course Objectives

The course aims to provide participants with an integrated view of international financial markets and the financial management of multinational firms. The focus is on the markets for spot exchange, currency forwards, futures, options, swaps, international bonds, international equities and innovative instruments. For each of the above mentioned markets, valuation of instruments traded and their application are exploited through software simulations and case studies.


Course Content Summary

  • Main players in the International Financial Context. Euromarket versus international market. Global banking: products and markets. The tasks of international financial managers.
  • Currency markets and the behaviour of the exchange rate. Understanding the working of spot and forward currency markets. Implications for corporate decisions.
  • Markets for exchange-rate derivatives and the hedging decision. How to measure currency exposure. Hedging techniques using options and futures. Uses and abuses of currency derivatives by corporations.     
  • International fixed income markets and the financing decision: use of international bonds and swaps to play cross-border financing strategies. Exploiting differences in tax regulations.
  • International equity markets and the investment decision. Understanding the cost of capital for cross border investments. Valuing projects exposed to currency and sovereign risk.
  • Innovation in international financial markets: structured and hybrid instruments. Securitisation and asset backed securities: structures and markets.

Detailed Description of Assessment Methods

Attending students
The exam is written. Participants can split the exam into two parts, a 1st partial exam and a 2nd partial exam  or simply have one general exam at the end of the course. In both cases, 30% of the valuation is based on assignments given during the course.

Not-attending student
The exam is written.


Textbooks

  • EUN, RESNICK, International Financial Management, Mc Graw Hill International editions, 4th edition.
Exam textbooks & Online Articles (check availability at the Library)
Last change 16/05/2006 00:00