Course Content (Syllabus)
The International Monetary System historical review. Foreign exchange market. Determination of exchange rates - Long-run. Determination of exchange rates - Short-run (Foreign exchange return model). Financial Derivatives (Forwards - Fixed-term purchases, Futures - Futures contracts, Options – Options, Swaps – Exchanges. Efficient Market Hypothesis (EMH). Uncovered interest rate parity. Covered interest rate parity. International trade. Valuation of fixed income securities. Measures of Returns (interest rates). Bonds. Modern Portfolio Theory - Portfolio Management Theory. Balance of Payments.