Unit 1 Spot
Exchange Market
Why
do you think international finance is necessary for the multinational
corporation?
What
is international finance? How is international financial management different
from domestic financial management?
What
is the difference between the retail or client market and the wholesale or
interbank market for exchange market?
What do you
mean by a spot exchange market? Who are the participants of spot exchange
market?
Unit 2 Forward and Future Exchange
Markets
What do you
mean by forward exchange rate? Why does forward rate differ from spot
rate?
What
are the major differences between currency forward and futures contract?
Explain.
What
is foreign exchange rate? Explain determinants of exchange rates?
What
is currency option? How do American options differ from European options?
Unit 3 Balance of
Payments
Define
Balance of payment. Give a brief account of components of Balance of Payment.
Why
would it be useful to examine a country’s balance-of-payment data?
What
is a current-account surplus?
What
is a capital-account deficit?
Unit 4 International
Parity Conditions
What
do you mean purchasing power parity? Explain the absolute and relative purchasing power parity.
What
is purchasing power parity? Explain the reasons for departure from purchasing
power parity.
What
is interest rate parity? Explain the reasons for violation of interest parity
conditions.
What
do you mean Law of one price?
Unit 5 Foreign exchange
risk and exposures
What
do you mean by foreign exchange risk exposure? Explain the various hedging
techniques available to manage foreign exchange risk.
What
is meant by “operating exposure”?
What
happens to an importer’s total revenue and cost after a devaluation of the
importer’s currency? Explain
What
happens to an exporter’
