International Financial Markets

This course extends the principles of Finance to an international context. In an international context, aside from asset risk, firms face the additional component of exchange rate risk management in their investment and financing decisions. This course covers such topics as foreign exchange markets and their role in international movements of funds; Eurocurrency; Eurobonds; international stock markets, interaction among and integration of national and international money and stock markets; and regulation of Eurocurrency markets and flow of funds. The course also discusses the concept of exchange rate risk and the use of various currency instruments; spot, forwards, futures, options, and swaps and their applications in hedging exchange rate risk. Finally, exchange rate models like the two parity conditions are discussed.Prerequisites: FIN 9771 and FIN 9773, or equivalents.