FT 403F International strategic Finance Course Objective To provide a conceptual framework of the Working of International Financial Institutions, Money

Markets, Exchange Transactions and Capital Markets. Examination Scheme: Students shall be evaluated on two components , internal and end semester examination. Internal component shall be of 20 marks based on continuous evaluation .The Semester Examination will be worth 80 marks, it will have two Section, A and B. Section A, worth 60 marks will comprise of seven theory questions out of which a student will be required to attempt any four questions. Section B worth 20 marks will contain Cases. Course Contents 1. International Financial management- an overview, International Financial management and domestic financial management, motivations for international finance. Theories of Foreign Exchange rate movement and International Parity Conditions -Purchasing Power Parity, International Fisher Effect 2. The Foreign Exchange markets- Functions of the Foreign Exchange Market, The Foreign Exchange rates -direct and indirect quotations. Spot market and forward market - forward premiums and discounts, Bid - ask spread, Interest Arbitrage Covered Interest Arbitrage and Interest Parity theory, 3. Management of Foreign Exchange Risk -Translation exposure - Functional Versus Reporting Currency,. Comparison of Four Translation Methods, Transaction exposureMeasurement and Management of Transaction exposure. Currency Correlation and Variability as Hedging TooIs . Economic Exposure, Transaction Exposure Versus

Economic Exposure. 4. Financial Management of the Multinational Firm - Cost of Capital and Capital Structure of the Multinational Firm - determining capital structure components, Cost of Capital for MNCs VS Domestic Firms, 5. Multinational Capital Budgeting - Problems and issues in foreign investment analysis. Techniques of capital budgeting - NPV, IRR. APV. 6. Multinational Cash management - Centralized perspective of cash flow analysis. Techniques to optimize cash flow - leading and lagging, netting, matching. Country risk analysis . 7. Managing Foreign Operations Eurocurrency markets, International Bonds Markets, External Commercial Borrowings, Advantages of Euro Issues. GDRs and ADRs

Text Book Apte, PG International Financial Management 5e,Tata Macgraw Hill Madura International Financial management 1 st , 2008 Cengage Learning Shapiro,Multinational Financial Management, 8ed,Wiley India Madhu Vij International Financial Management,2010,Excel books

Reference Book Eun &, Rusnik International Financial Management ,4eTataMacgraw Hill Clark, International Financial management, 2 nd

2008 . Cengage Learning R M Srivastava Multinational Financial Management Excel books Bhalla. V.K.International Financial Management:Text and Cases Anmol Publi Kevin,Fundamentals of International Financial management,PHI Learning14 FT 404F Financial Engineering & Risk Management Course Objective The objectives of this course are to explain to the student the risk return tradeoff and manage financial risk through the use of various derivatives and to make them understand operations of derivatives market. Examination Scheme: Students shall be evaluated on two components , internal and end semester examination. Internal component shall be of 20 marks based on continuous evaluation .The Semester Examination will be worth 80 marks, it will have two Section, A and B. Section A, worth 60 marks will comprise of seven theory questions out of which a student will be required to attempt any four questions. Section B worth 20 marks will contain Cases. Course Contents 1. An overview of risk management - Investors and risk management. the profitable side of risk management; Risk management process - risk models; Derivative - Hedging Currency Risk , Hedging Risk through Forward Contracts. Indian Derivatives Market. 2. Interest rate Swaps - rationale, liability and asset based interest rate swaps, pricing ol swaps, forwards and options on swaps.

3. Creating value with risk management- financial distress and investment, risks in banking- credit risk, foreign exchange risk, political risk and country risk, liquidity risk 4. Financial Engineering; Construction ol option strategies in various market situations and their pay off; Betting on a large price decrease, betting on a small price increase 5. Option Market: Types of Options, Uses of Options, Payoffs from Options, Trading Strategies, Involving Options Bull-Bear, Butter Fly, Calendar and Diagonal Spread, Straddles, Strip and Straps, Options Valuation and Pricing. Factors Determining Option Price. Black Scholes Models. Concept of Delta, Theta, Gamma Vega, Exchange Traded Option- Stock, Option, Foreign Currency Option, Over the Counter Exchange Option, Index Options, Put Call Parity. 6. Exotic options: Compound, binary, barrier and Asian options, options involving several assets. Swaps Transactions: Interest rate swaps, currency swaps, commodity swaps and equity swaps; Pricing and valuation of swaps. credit default swaps. 7. Future Contracts: Introduction to Futures Markets, Future Contract and Future Trading, Specification of the Future Contract, Newspaper Quotes, Hedging using Futures, Index Futures. Basics of Stock Index Future, Interest Rate Futures, Foreign Exchange and Currency Future, Mechanism of Future, Contracts, Operations of Margin, Convergence Clearing Process, Clearing house and Clearing Margins, Hedging, Difference between Forward and Future contracts. TEXT BOOKS Hull. J. C Options Futures and Other Derivatives 7ed,2009 PHI New Delhi Varma, Jayanth,Derivatives and Risk Management1eTataMcgrawHill Stulz st Risk management and Derivatives,1

,2008 Cengage Learning Parasuraman Fundamentals Of Financial Derivatives, 2nd Ed,Wiley15 Reference Book Marshal& Bansal,Financial Engineering,2010, PHI New Delhi Bhalla. V. K. Financial Derivatives: Risk Management: S. Chand & Company Chance Derivatives and Risk Management Basics st 2008 Cengage Learning Dorfman,Introduction To Risk Management, PHI New Delhi Ashthana, Financial Risk Management, 2010 Himalaya Pub.House Johnson Introduction toDerivatives - Options, Futures, and Swaps,Oxford Press16 FT405F Investment Analysis & Portfolio Management Course Objective The objectives of this course is to provide the students indepth understanding of investment techniques as applied to various forms of securities and acquaint them with the functioning of mutual funds, investment strategies and portfolio management services. Examination Scheme: Students shall be evaluated on two components , internal and end semester examination. Internal component shall be of 20 marks based on continuous evaluation .The Semester Examination will be worth 80 marks, it will have two Section, A and B. Section A, worth 60 marks will comprise of seven theory questions out of which a student will be required to attempt any four questions. Section B worth 20 marks will contain Cases. Course Contents 1

1. Introduction: Concept of Investment, Investment V/S Speculation, Financial and Economic Aspect of Investment, Types, Characteristics and Objectives of Investment .Selecting Investments in a global market. 2. Risk Return: Concept Of Risk and Return, Systematic and Unsystematic Risk, Multifactor Model of Risk & Return, Efficient capital Markets, Concept of Beta, Capital Assets Pricing Model, SML and CML Valuations. 3. Securities Valuation: An Introduction to Security Valuation, Macroeconomic & Market Analysis: The Global Asset Allocation Decision 4. Valuation of Bonds: Bond Fundamentals, Bond Valuation Models: PV Model, Bonds Yield, Measures Duration, Modified Duration, Immunization Conversity, Bond Value Theorem. Valuation of Equity: Constant Growth Model, Multi-Stage Growth Model, P/E Ratio and Earnings Multiplier Models. Valuation Of Preference Shares, Valuation of Warrants, Rights Issued. 5. Security Analysis: Stock Market Analysis, Fundamental Analysis and Technical Analysis, Dow Theory, Elliott Wave Theory, Efficient Market Theories and Testing. 6. Portfolio Concepts: Portfolio and Security Returns, Diversification, Markowitz Model, Sharp Index Model. Factor Models and Arbitrage Pricing Theory. Portfolio Investment Process. 7. Portfolio Evaluation: Measures of Returns, Formula, Plans, Sharpe and Treynor Measures.Portfolio Management Strategies: Bond Portfolio Management Strategies and Equity Portfolio Management Strategies TEXT BOOKS Bodie & Mohanty,Investments: An Indian Perspective,8,Tata Mcgraw Hill

Reilly, Investment Analysis and portfolio management 2009 Cengage Learning Bhalla. V.K Investment Management.2008 Sultan Chand New Delhi: Sudhindra Bhat Security Analysis and Portfolio Management Excel books17 Elton Modern Portfolio Theory and Investment Analysis, 7th Edition,Wiley

Reference Book Maheshwari, Investment Management,PHI Learning V.A. Avadhani,Securities Analysis & Portfolio Management Himalaya Publi House Mayo An Introduction to Investments 1 st 2009 Cengage Learning Luenberger Investment Science Oxford Press Ho,Securities valuation-Application of Financial Modelling Oxford Press