LibGuides: Content Master: FIN635: International Finance : Module 3

Module 3 Required Resources

Textbook

Your course textbook can be accessed via the DART eBook link in the Getting Started module.

Read the following:

Ch. 6: International Parity Conditions

How price levels and price level changes (inflation) in countries determine the exchange rates at which their currencies are traded.

Ch. 7: Foreign Currency Derivatives: Futures and Options.

How foreign currency futures are quoted, valued, and used for speculation purposes.

Modelling the real yen–dollar rate and inflation dynamics based on international parity conditions
Almaas, S. S., & Kurita, T. (2019). Modelling the real yen–dollar rate and inflation dynamics based on international parity conditions. Journal of Asian Economics, 61, 51–64. https://doi.org/10.1016/j.asieco.2019.02.003.
This study aims to explore the dynamics of the real yen–dollar rate and inflation rates by analyzing Japan–US monthly economic data in recent years.
Do firms hedge with foreign currency derivatives for employees?
Huang, P., Huang, H.-Y., & Zhang, Y. (2019). Do firms hedge with foreign currency derivatives for employees? Journal of Financial Economics, 133(2), 418–440. https://doi.org/10.1016/j.jfineco.2019.01.008.
This article provides the first evidence that a firm's employee treatment score is an important determinant of its fraction of foreign sales hedged with currency-based derivatives.
Transaction Exposure Money Market Hedge
Moy. R. (2020). Transaction exposure money market hedge [Video]. St. John's University.
Accounting for Currency Hedging using Forward Contract
Farhat Lectures. (2019). Accounting for Currency Hedging using Forward Contract [Video]. Farhat Lectures.
Current Rate Method: Translation Method of Foreign Financial Statements
Farhat Lectures. (2019). Current rate method: translation method of foreign financial statements [Video]. Farhat Lectures.
Level II Concept: Comparison of Current Rate and Temporal Methods
IFT. (2020). Level II concept: Comparison of current rate and temporal methods [Video]. IFT.