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Learning Objectives
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The course aims to give students an understanding of global macroeconomic and financial market developments with particular emphasis on how these developments affect international corporations. We also discuss various hedging techniques that are available to corporations, including futures, options, and swap contracts.
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Marking Scale
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7-step scale
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Exam Period
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December/January
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Individual 4-hour written exam (no written or technical aids are allowed). The exam is graded by an internal examiner, cf. the General Degree Regulation § 25, S. (1) no. 1. The regular exam takes place in December 2010.
Make-up/ re-exam takes place in January/February 2011 |
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Examination
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Prerequisites for Attending the Exam
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Course Content
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The course first outlines current macro and financial market trends within a historical context that enables students to get a proper perspective on the current financial crisis and the global recession. Then the course presents a menu of useful early warning signals and leading indicators that companies use in their risk management. Subsequently follows a presentation of different theories that seek to explain key developments in currency markets in particular. How multinational companies can manage these currency market movements, including upside and downside risks, is the next topic. In this context we also present and discuss various ways of hedging risks including futures, options and swap contracts. |
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Teaching Methods
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A mixture of lectures, exercises, and cases. Students are expected to participate in class discussions.
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Literature
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Moffett, Stonehill, and Eiteman (2006). Fundamentals of Multinational Finance, 2nd Edition. Addison-Wesley.
Yamarone, Richard (2004). The Trader's Guide to Key Economic Indicators. Bloomberg.
Risager, Ole. Investing in Value Stocks. McGraw-Hill, forthcoming November 2009. |
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