Faculty
TBA

Course Coordinator
Ole Risager

The course aims to give students an understanding of global macroeconomic and financial market developments with particular emphasis on how these developments affect international corporations. We also discuss various hedging techniques that are available to corporations, including futures, options, and swap contracts.

The course first outlines current macro and financial market trends within a historical context that enables students to get a proper perspective on the current financial crisis and the global recession. The course then goes on to present a menu of useful early warning signals and leading indicators that companies use in their risk management. Next follows a presentation of different theories that seek to explain key developments in currency markets in particular. How multinational companies can manage these currency market movements, including upside and downside risks, is the next topic. In this context, we also present and discuss various ways of hedging risks, including futures, options and swap contracts.

Written 4-hour closed book exam

A mixture of lectures, exercises, and cases. Students are expected to participate in class discussions.