ECW2721

Trade finance and foreign exchange

(BUS)

Malaysia: Dr Ergun Dogan

6 points + Malaysia, second semester + 3 hours per week + Prerequisite: ECW1101

Synopsis: The importance of international finance; foreign exchange markets - spot, forward, futures and options markets; the determination of exchange rates; purchasing power parity and interest rate parity; hedging and speculating in foreign exchange markets, Eurodollars and Euro-currencies; aspects of short term and long term financing; operating exposure.

Assessment: Major essay (1500 words): 20% + Tutorial exercises: 10% + Examination (2 hours): 70%