Prof. Dilip K. Ghosh (USA) is starting a new course in “International Finance and Foreign Exchange Markets”. The course will be held in room 420 of the Faculty of Economics and BA every Monday, Thursday and Friday from 6 – 9 pm over the period 18 – 31 January 2010.

Although the course is recommended to Master’s students, Prof. Ghosh said that all students interested in the subject may attend. See course outline.

The course is delivered in English. Those who successfully complete the course will be able to validate the course as optional.

You might be interested to know that Prof. Dilip Ghosh is the author of many books , to mention just a few, Arbitrage, Hedging, and Speculation; Global Financial Markets; Regional Financial Markets and that Prof. Dilip K. Ghosh has been named the Hellenic Bank Association Chair of Banking and Finance at the Department of Finance and Accounting, St Kliment Ohridski University of Sofia, Faculty of Economics and BA.

As the number of participants of the course is limited, please register in room 409, or write an e-mail to Ivanka Djakova ivankad@feb.uni-sofia.bg

INTERNATIONAL FINANCE AND FOREIGN EXCHANGE MARKETS

Sofia University

Professor Dilip K. Ghosh

Objective:

The course attempts to provide the conceptual framework to examine the basic structure of an economy and the behavioral rules for its micro-agent(s) such as a firm and/or an individual investor in the international setting. The concepts and significance of foreign exchange, balance of payments, currency market arbitrage, hedging and speculation, capital budgeting in the open-economy structure, measuring and managing transaction, translation, and political risk, and so on are the basic ingredients of this subject. More details on the coverage are provided below under course outline. Students are strongly encouraged to participate in the class discussions.

Textbook:

Arbitrage, Hedging, and Speculation: The Foreign Exchange Market, Ephraim Clark and Dilip K. Ghosh, Praeger Press, Connecticut.

Multinational Business Finance, David K. Eiteman, David K. Eiteman, Arthur I. Stonehill, and Michael H. Moffett, Pearson.

Multinational Financial Management, Alan C. Shapiro. Allyn and Bacon.

Recommended Reading:

The Wall Street Journal, Financial Times.

Examination:

One test at the end of the term will be given.

Course Outline:

An Overview (Class lecture, and chapters to be assigned);

Balance of Payments and International Economic Linkages (handout, and chapters to be assigned);

International Monetary Structures (handout, and chapters to be assigned);

The Foreign Exchange Market: The Structure, Tools and Mechanics (chapters to be assigned)

Parity Statements: Interest Rate Parity, Purchasing Power Parity, Fisherian Parity, and

Forward and Future Spot Rate Parity; Significance of these parities and absence thereof

(chapters to be assigned, and class lectures);

Risk Exposure and Risk Management (chapters to be assigned);

Capital Budgeting for a Multinational Corporation (chapters to be assigned);

Cost of Capital and Capital Structure for Foreign Investments (chapters to be assigned);

Interest Rate and Currency Swaps (handout, and chapters to be assigned);

International Banking: Trends and Strategies (chapters to be assigned).