International Financial Markets
- Credits: 8
- Ending: Examination
- Range: 2P + 2C
- Semester: winter
- Year: 3
- Faculty of Commerce
Teachers
Included in study programs
Teaching results
Students will possess following abilities and knowledge:
- basic knowledge about the organisation and structure of financial markets,
- about money, its history and money markets,
- on the system of exchange rates, foreign exchange markets and basic operations on these markets,
- on relations between fundamental macroeconomic quantities and their equilibrium conditions (interest rates, inflation and exchange rates, as well as spot and futures markets)
- on the breakdown of capital markets and their instruments,
- commodity markets, the insurance market and hedging.
Students will obtain following skills:
- the ability to utilize publicly available information from financial markets usable in international trade,
- carry out basic analyses in relation to financial operations on international financial markets.
Students will gain following competences:
- identify, assess and correctly interpret the underlying aggregate macroeconomic variables linked to international trade (exchange rates, interest rates, forward rates),
- identify appropriate instruments from financial markets related to the international trade and use them,
- identify financial instruments suitable for hedging a position or a planned transaction.
Indicative content
Financial markets, their structure and instruments: money and money market, currency and exchange rate, foreign exchange market and operations, international parity conditions, stock markets, portfolio theory, bonds, financial derivatives, commodity market. Hedging and hedging operations on financial markets, insurance market.
Support literature
1. CHOVANCOVÁ, Božena - MALACKÁ, Viera - ÁRENDÁŠ, Peter - KOTLEBOVÁ, Jana. Investovanie na finančných trhoch. 1. vydanie. Bratislava : Sprint 2, 2021. ISBN 978-80-89710-53-1.
2. BODIE, Zvi - KANE, Alex - MARCUS, Alan. Investments. 13th edition. New York : McGraw-Hill, 2024. ISBN 978-1-266-83638-1.
3. MADURA, Jeff. International Financial Management. 14th Edition. Boston: CENGAGE, 2021. ISBN 978-0-357-13054-4.
Syllabus
1. Financial market - definition, structure of financial markets and its instruments, aspects of trading on financial markets. 2. Money - a brief history and development of money, definition, functions of money, monetary aggregates, creation of money, money multiplier. 3. Money market - characteristics and money market instruments. 4. Currency and exchange rate - monetary policy and its instruments, exchangeability (convertibility) of currencies, currency systems and their development (Bretton Woods and Kingston monetary system), alternative currencies and cryptocurrencies, overview of the most widespread currencies in international trade. 5. Foreign exchange market (forex) - characteristics and principle of operation, historical developments, current trends, aspects of trading on the foreign exchange market, factors that influence developments in the foreign exchange market, developments of selected world currencies/currency pairs. 6. International parity conditions and relations between money and foreign exchange markets. 7. Stock markets – internal and market value, asset valuation models, international stock markets, stock indices, stock market operations, IPO. 8. Portfolio investment and diversification. 9. Bonds – government and corporate bonds, types and valuation of bonds. 10. Financial derivatives — basic breakdowns and characteristics. 11. Commodity market – basic negotiable commodities and trading organisation. 12. Hedging and hedging operations on financial markets — interest and currency exposure, simple derivative strategies. 13. Insurance market. Insurance market in Slovakia/EU, structure of insurance market, insurance supervision and regulation (Solvency II), role of reinsurance undertakings in insurance, consumer protection in the field of insurance products.
Requirements to complete the course
20% written test
20% seminar work/assignment
60% written final exam
Student workload
Total: study load 8 credits x 26 h = 208 hours
Separate study load for individual educational activities:
Attendance at lectures: 26 hours
Attendance at seminars: 26 hours
Preparation for seminars: 52 hours
Preparation for written test: 39 hours
Preparation for the final exam: 65 hours
Language whose command is required to complete the course
Slovak, English
Date of approval: 09.02.2023
Date of the latest change: 05.03.2024