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D] Syllabus:

1. Fundamental equilibrium relationships covered interest parity, purchasing power parity &Fisher open theorem.

Foreign Exchange exposure; transaction & operating.

Derivatives Pricing & Analysis; foreign exchange arithmetic, foreign exchange swaps,forward contracts, financial futures & financial swaps.

Currency options fixed income analytic & interest rate options.Capital Budgeting for international projects, international cash management, international

asset pricing theories, Financial Aspects of International Negotiations.

2. Operations of foreign exchange markets, modes & mechanism of spot & forward exchange contracts. Exchange trading & position.

Syndication, Swaps, Options, Offshore banking, International Money, Capital &Foreign Exchange Markets with reference to New York, London, Tokyo, Hong

Kong & Singapore.

3. Theories of exchange rates. Purchasing power parity theory. Demand supply & elasticity in foreign exchange rate determination. Balance of Payments theory. Historical perceptive on exchange rate, Gold Standard. Inter-war instability, Bretton woods, fixed exchange rates, fluctuating exchange rates Case

for fixed or fluctuating exchange rates. The changing nature of world money.

The rise of private world money. Euro-currencies, Euro-dollars, European Currency Unit,

C.R.U., their mechanics & impact, International capital-flows & shocks. International debt problem - its origin, history & status. International liquidity & SDRs.

4. Innovative International Financial Products, Socio-Political Issues in Strategic International Financial Management (with special

reference to multi-national corporations)

ReferenceText:1. Interantional Finance Avadhani

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2. Foreign Exchange Management A.V.Rajwade3. Foreign Exchange Handbook-H.P.Bhardwaj

E)TimeTable.

LectureNo.

Topic Duration

1. Introduction to International Finance and Foreign Exchange, Historical

Perspective on Exchange Rates, Balance of Payments, Types of

Exposures,

3 Hrs.

2. Parity Theories(Purchasing power,Interest,Fisher open).Demand supply

and elasticity in foreign exchange rate determination.Methods of

quoting exchange rates,buying and selling rates.

3 Hrs.

3. Exchange rate Arithmetic .Operations of forex markets, modes and

mechanism of spot and forward exchange contracts, exchange trading

and position.

3 Hrs.

4. Exchange rate Arithmetic .Operations of forex markets, modes and

mechanism of spot and forward exchange contracts, exchange trading

and position.

3 Hrs

5. Capital Budgeting for international projects,international cash

management, international asset pricing theories ,Financial Aspects of

International Negotiations

3 Hrs.

6. Derivatives 3 Hrs.

7. Derivatives 3 Hrs.

8. Internal assessment Test 3 Hrs

9. Rise of private world money, , Euro Currency, Euro Dollars, Euro

Currency Unit.International capital-flows and shocks,International debt

problem,International Liquidity & SDR

3 Hrs.

10. Syndication,Offshore Banking,International Money,Capital & Forex

Markets w.r.t New York,London,Tokyo,HK & Singapore

3 Hrs.

11. Socio Political issues in Strategic International FM(w.r.t MNC) 3 Hrs.

12. Test/Case 3 Hrs.

Internal Assessment40 Marks

Assignment and Test30 Marks

Attendance - 10 Marks

Final Assessment - 60 Marks

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VII.Internal Evaluation-will be of 40 marks out of which 10 marks will be for attendance. The

balance 30 marks would be a combination of written test/case/viva.