This Subject is designed to familiarize students with international financial transactions and Operational aspects of foreign exchange markets. It focuses on forex market participants, exchange rates determination, international arbitrage, foreign exchange risks and its management and international capital market. It enables students to understand the crux of international financial market.
Course topics:
- International Financial Environment
- International Financial Transactions
- Gold Standards and Paper Currency Standard
- Purchasing Power Parity and Paper Currency Standards
- Floating Rate System
- Currency Basket System
- Foreign Exchange Market
- Exchange Rate Arithmetics
- Understanding Merchant Rates
- Foreign Exchange Forward Contracts
- VaR and Foreign Exchange Market
- International Parity Conditions and Movement of Exchange Rate
- Exchange Rate Determination and Forecasting
- Development of Foreign Exchange Market in India
- Foreign Exchange Exposures and Transaction Exposure
- Analysis of transaction exposure
- Foreign Exchange Futures Market
- Currency Options
- Interest rate swaps
- Currency swaps
- Operating Exposure Assessment
- Operating Exposure Management
- International Capital Structure
- International Capital Asset Pricing
- International Capital Budgeting and FDI
- International Equity Market - GDR
- World Trade Organisation
- International Integration of India’s Financial Markets
- Forex Reserves Composition and Determinants of Optimum Reserves – A Case for India
- Movement of Exchange Rates in India
- International Trade Theory
- International Bond Market
- India’s Foreign Trade – Direction and Composition
- Financial Stability
- Money and Forex Markets interaction
- Characteristics of Indian Foreign Exchange Market
