Home country

Foreign countries
Investor
$
securities
Domestic Financial Market
Equities
Bonds
Forward and
Futures
Options
Firm
$
securities
$
securities
Project Investments
International Trading or
Foreign Project Investments
securities $
Equities
Bonds
Forward and
Futures
Options
Transactions are affected by foreign exchange
rates, accounting systems, taxes, etc.
Foreign exchange rates are associated with many
macroeconomic factors, including interest rates,
inflation rates, balances of payments (BOPs), or
monetary policies in the home and foreign countries
The other goal of this course is to learn how to
identify, measure, and manage exchange rate
risks for foreign investments
International monetary system, BOP,
international parity conditions, etc.
Foreign exchange rate determination
and forecasting
Transaction, operation, and
translation exposures
Foreign exchange market, foreign currency
derivatives, interest rate and currency swaps
Raise capital globally
Foreign Exchange Market
Spot
Currency Forwards
and Futures
Global Financial Markets
Interest Rate and
Currency Swaps
Debt
Policy or
Optimal
Capital
Structure
Dividend
Policy
Project
Valuation
(Time
Value of
Money
and DCF
method)
Risk and
Oppor-
tunity
Cost of
Capital
(CAPM)
Portfolio
Theory and
Risk
Diversifi-
cation
CAPM,
Multifactor
Models, and
APT
Trading
Strategies
(EMH and
Fundamental
and
Technical
analysis)
Security Analysis
(Macroeconomic
analysis, Equity
Valuation, and
Financial Statement
Analysis)
Debt Analysis (Debt
Valuation and Duration
and Convexity for Risk
Management)
Investment
Companies (or
Mutual Funds)
$
Securities
$
Securities