Itf SLM Syllab Bba
Itf SLM Syllab Bba
Foreign Exchange market, Spot rate, forward rate, Participants in foreign exchange 5
II market, types of quotations in forex markets
Calculation of forward rates using spot rates, calculation of discount/premium on 5
spot rate using spot and forward rates, Spot Rates with and without transaction
III costs, synthetic quotes.
Section B
Arbitrage: one point, two point and three point arbitrage; Interest rate Parity 5
IV (explanation of borrowing and lending criteria, diagrammatic presentation) PPP
Principle (both absolute and relative versions)
International Flow of funds: Balance of payments, Structure of balance of payments, 5
V
Equilibrium, disequilibrium in balance of payments
Development in International monetary system, gold standards, Bretton woods 5
VI
System of exchange rates, Exchange rate regime since 1973
Section C
Exchange rate mechanism: Exchange rate quotations, Nominal, real & effective 5
VII
exchange rates
5
Determination of exchange rate in spot market, Factors influencing exchange rate,
VIII
Exchange rate determination in forward rate
References:
1. Apte, PG. International Finance. TMH
2. Madura, Jeff. International Financial Management.Cengage Learning
3. Shapiro, Alan C. Multinational Financial Management (6th ed.).Wiley publication.
4. Hull, John C. Options, Futures and Other Derivatives (7th ed.). Pearson Education