The objective of this subject is enrich students with the mechanism of the foreign exchange markets , measurement of exposure and hedging against risk .
1. INTRODUCTION :
2. CURRENCY FUTURES AND OPTION MARKETS
3. DETERMINATION OF EXCHANGE RATES:
4. FOREIGN EXCHANGE EXPOSURE AND RISK:
5. INTERNATIONAL TAXATION :
6. ADDITIONAL TOPICS :
1. INTRODUCTION :
- Foreign Exchange Markets and Transactions .
- Quoting Foreign Exchange Rates , Spread , Official and Free market rates.
- Direct , Indirect and Cross Rates .
- Forward Rates :Quoting and Structure .
- Forward Exchange Rates versus Expected Future Spot Rate .
- Outright Forwards versus Swaps .
2. CURRENCY FUTURES AND OPTION MARKETS
- Currency Futures , Marking to Market .
- Futures Contract Versus Forward Contract .
- The link between the Future and the Forward Contract.
- Currency Options , Exchange Traded Options .
- Quotation Conventions and market organization .
- Determining market value of Options.
- Over the Counter (OTC) Options .
3. DETERMINATION OF EXCHANGE RATES:
- The Balance of Payment Accounts.
- The net International Investment Position .
- Supply and Demand View of Exchange Rates .
- Modern Theories of Exchange Rates .
- Alternative Systems of Exchange Rate .
- Hybrid System and Target Zone Arrangement .
4. FOREIGN EXCHANGE EXPOSURE AND RISK:
- The nature of Exchange Rate Risk and Exposure .
- Types of Foreign Exchange Exposure .
- Alternative Strategies for Exposure Management.
- Exposure Management Techniques .
- Hedging Risk and Exposure .
5. INTERNATIONAL TAXATION :
- Different Forms of Taxes, Import Duties .
- Withholding Taxes AND Branch vs Subsidiary Taxes .
- Organizational structures for reducing taxes .
- Tax Reliefs
- Tax Treatment of Foreign Exchange Gains and Losses .
6. ADDITIONAL TOPICS :
