Ch2 Intro Goals of management two approaches Shareholder capitalism model and stakeholder model.

Agency theory (how can shareholders come up with policies that will reduce conflict between managers and owners). Corporate governance (not included) Ch3 Intl monetary systems Exchange rates system spot and forward rates. Direct and indirect quotes. 8 different types of exchange rate systems. How these 8 systems are working. Euro currency. Pros and Cos of Fixed vs Floating exchange rate system. Calculate the discount or premiums. Ch4 Balance of payments, Current account, capital financial account, Official reserves. Ch6 Foreign exchange market, Features of this market trading of currencies. Reasons why buy and sell currencies to finance foreign trade transactions, foreign inflows and outflows of capital. Three major players in currency market chartered banks, large mncs dealers and central banks of various countries. (What is the role of these players). How to calculate crossrates. (This chapter includes calculations) Ch 8 Forward contract, Future contract distinction between these two. Currency options (No calculations). Definitions of call options, put options. The role of buyer (holder) in the options, role of writers of options. Terms like at the money, in the money and out of money. Skip pricing of options and the models. Ch 10 Transaction exposure, defining the exposure How to cover the transaction exposure. Examples ( Trident or Dayton)