Week |
Subject |
Related Preparation |
1) |
• Syllabus
• Discuss Library Orientation Course, Instructor to verify completion
• What’s Special about “International” Finance?
• Goals for International Financial Management in accordance with the ethical considerations throughout the world.
• Globalization of the World Economy
• Evaluation of Multinational Corporations
|
Read the syllabus
Read of Seyidoğlu (2013), Chapter 1 |
2) |
• Identify the stages of corporate expansion overseas by which companies gradually become MNCs
• Identify the advantages of being multinational, including the benefits of international diversification
• Describe the general importance of financial economics to multinational financial management
• Explain the theory of comparative advantage
• Discuss why do firms become multinational
• Theory of Comparative Advantage
• What is Different about Global Financial Management?
• Market Imperfections
• Globalization Process
• The Process of Overseas Expansion by Multinationals
|
Reading of Seyidoğlu(2013), Chapter 4.
Answer the research questions at the end of the chapter and preparing for class discussion.
|
3) |
• Structure and Functions of the Foreign Exchange Market
• Traders of the foreign exchange market
• Spot exchange rate quotation
• Buying-selling exchange rate margin
• Spot currency transactions
• Alternative expressions of cross rates |
Reading of Seyidoğlu(2013), Chapter 4.
Answer the research questions at the end of the chapter and preparing for class discussion. |
4) |
• Triangle (Three-ended) arbitrage
• Spot market microstructure
• Forward exchange rate quotation
• Long and short forward positions
• Forward cross rates
• Swap transactions
• Forward premium |
Reading of Seyidoğlu(2013), Chapter 6.
Answer the research questions at the end of the chapter and preparing for class discussion. |
5) |
• Interest rate parity and the law of one price
• Purchasing power parity
• Fisher effect
• International Fisher effect |
Reading of Seyidoğlu(2013), Chapter 5.
Answer the research questions at the end of the chapter and preparing for class discussion.
Prepare for the quiz. |
6) |
• Interest rate parity
• Guaranteed interest rate arbitrage
• Determination of interest rate parity and exchange rate
• Reasons for deviation from interest rate parity
• Estimation of exchange rates
• Effective market approach
• Fundamental analysis approach
• Technical analysis approach
• Performance of estimation methods
• Quiz |
Reading of Seyidoğlu(2013), Chapter 7.
Answer the research questions at the end of the chapter and preparing for class discussion.
Preparation for the midterm exam. |
7) |
Midterm Exam |
None |
8) |
• Features of futures contracts
• Currency futures markets
• Features of FX futures contracts
• Similarities and differences between foreign exchange futures and forward contracts
• Futures Contracts: Some Preliminaries |
Reading Seyidoğlu(2013), Chapter 8.
Answer the research questions at the end of the chapter and prepare for class discussion. |
9) |
• Terminology related to options
• Currency option markets
• Quotation and prices of currency options
• Risk and return in option transactions
• Value and pricing of the option |
Reading of Seyidoğlu(2013), Chapter 9.
Answer the research questions at the end of the chapter and preparing for class discussion.
Prepare for the quiz. |
10) |
• Interest rate risk
• Managing interest rate risk
• Quiz |
Reading of Seyidoğlu(2013), Chapter 10.
Answer the research questions at the end of the chapter and preparing for class discussion. |
11) |
• Types of currency exposure
• Hedging strategy with forward market
• Money market hedge strategy
• Hedging strategy with options markets |
Reading Seyidoğlu(2013), Chapter 11.
Answer the research questions at the end of the chapter and preparE for class discussion. |
12) |
• Risk sharing agreements
• Determining the costs of using different hedging techniques
• Defining the operational effect and understanding its difference from the transaction effect
• Calculation of transaction effect in certain exchange rate change and cost, income scenarios
• Determination of appropriate marketing, production and financing strategies to combat the economic consequences of exchange rate changes.
• Impacts of exchange rate risk |
Reading Seyidoğlu(2013), Chapter 11
Answer the research questions at the end of the chapter and prepare for class discussion. |
13) |
• Identification of the accounting impact
• Define the four basic conversion methods
• Calculation of accounting impact with different methods
• Understanding the management of accounting impact
• Conversion methods
• Transformation effect and economic reality
• Development of accounting hedge strategy |
Reading of Seyidoğlu(2013), Chapter 3.
Answer the research questions at the end of the chapter and prepare for class discussion. |
14) |
• Definition of balance of payments
• Structure of the balance of payments
• Basic account groups of the balance of payments
• Balancing of balance of payments balance |
Prepare for the final exam |
15) |
Final Exam |
None |