International Finance

International Finance
SMM475

Maik Schmeling

2014

Maik Schmeling

International Finance (MSc)

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How to reach me
Contact details: e-Mail: Office:
Office hours:

[e-mail]
5055
Tuesday, 10.00 – 11.30

If you have questions regarding the content of the course you can always send me an e-mail
(and expect a quick answer) or come to my office hours.

Maik Schmeling

International Finance (MSc)

2 / 268

Readings
As a general rule, the slides contain basically all the material you need to understand the topics and there is no extra required reading per se. However, my slides are largely based on the following books, which may be helpful to deepen your understanding:
International Financial Management (Prentice Hall/Pearson, 2009) by Geert Bekaert and Robert Hodrick (denoted BH below)
International Finance (Princeton University Press, 2009) by Piet Sercu (denoted PS below)
International Financial Management (Cengage Learning, 2011) by Jeff Madura and Roland Fox (denoted MF below)

Maik Schmeling

International Finance (MSc)

3 / 268

Coursework
Written report on one out of several topics.
Can be done in groups of up to five students.
Idea is to work independently on a topic related to international finance and to deepen your knowledge in one particular area.
Present reports in weeks 5 – 7.
See course outline for more detailed information.

Maik Schmeling

International Finance (MSc)

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Outline
Week 1

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Introduction and Motivation for International Finance
(Ch. 1, 2, 5.1, BH // Ch. 1 & 2 MF // Ch. 1 & 2, PS )

Week 2

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Currency Markets and Instruments: Spot markets
(Ch. 3, PS)

Week 3

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Currency Markets and Instruments: Forward markets
(Ch. 4 – 5, PS)

Week 4

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Currency Markets and Instruments: Swaps and Options
(Ch. 7 - 8, PS)

Week 5

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Risk Management
(Ch. 14, 17, BH // Ch. 12 & 13, PS)

Week 6

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Exchange Rate Determination and