20253 - INTERNATIONAL FINANCIAL MARKETS
CLMG - M - IM - MM - AFC - CLEFIN-FINANCE - CLELI - ACME - DES-ESS - EMIT - GIO
Course taught in English
Go to class group/s: 31
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, 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 simulations and case studies. The last part of the course is dedicated to deepen the role of new players in the global financial arena.
- Main players in the International Financial Context. Euromarket versus international market. Global banking: products and markets. The tasks of international financial manager.
- 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 other derivatives.
- International fixed income markets and the financing decision: use of international bonds and swaps to play cross-border financing strategies.
- International equity markets and the investment decision. Understanding the cost of capital for cross border investments. Valuing projects exposed to currency and sovereign risk.
- Trends and new players in global financial markets. The global consolidation of stock exchanges. International financial flows and new financial hubs in emerging countries.
Attending students: can split the exam into two parts, a partial examination and a final examination (each of them weighting 40% on final grade) or simply have one general exam at the end of the course (weighting 80% of final grade). In both cases attending students exam will focus on material discussed in class as well as book chapters indicated in the syllabus. Active class participation and group works will weight 20% of final grade.
Not attending students: can only take the general exam on the whole book.
- C.S. Eun, B.G. Resnick, S. Sabherwal, International Finance, McGraw Hill, 2012, Global Edition (to be confirmed in the detailed course syllabus).