Course Scope

The goal of the course is to introduce students into the international money and capital markets, along with the tools associated with the analysis of international investments.

Course Outline

• Exchange rate markets and multinational firms
• Interest rates and exchange rates
• Cross exchange rates
• Arbitrage
• The Eurodollar market
• Transaction exposure
• Accounting exposure
• Operational/economic exposure
• Hedging strategies of the exchange rate risk
• Forward markets
• Money markets
• Portfolio investments and exchange rate risk
• Cash management in the international environment

Suggested Reading

Eiteman, D.K., Stonehill, A.I., Moffett, M.H. International Financial Management.