Module code: AFE7001-A
This module is studied as a one week block and is taught at ESc Toulouse in France. The module aims to assist students to develop a comprehensive understanding of the main dimensions of International Finance in the context of European Banking; critically evaluate the impact of European financial integration on the performance of financial firms and the importance of risk management in the value creation process.
European Monetary System - how it works; towards EMU; single currency vs common currency
Financial Implications of European Integration - the Treaty on European Union; implications for firms; implication for states
Managing the Foreign Exchange Risk - the foreign exchange market; how to measure the foreign exchange risk; how to cover the foreign exchange risk internally and externally (Options, Forward market)
Managing the Risk of Fluctuations of Interest Rates - the 'New Monetary Market'; how interest rates fluctuate; how to measure the risk of interest rates internally and externally (Options, Swaps, FRA, Caps, Floors, Collars)
Country Risk Analysis - what is country risk; country risk and international indebtment; how to measure it and cover it for firms and for banks.