SEMESTER IV 1 2 3 4 5 6 7 FUTURES AND OPTIONS FOREIGN EXCHANGE MANAGEMENT COMMODITIES MARKETS INTRNATIONAL BUSINESS FINANCE GLOBAL MARKETS FINANCIAL

L INFORMATION TECHNOLOGY COMPREHENSIVE VIVA-VOCE TOTAL 4 4 4 4 4 4 24 1 1 1 1 1 1 06 3 3 3 3 3 3 18 100 100 100 100 100 100 600

M.B.A (Global Markets and Investment Management)

SECOND YEAR, SEMESTER FOUR

PAPER I

FUTURES AND OPTIONS UNIT I Why is Risk Management Important? Why do firms hedge? Uncertainty in Equity Markets, FOREX, commodity markets, interest rates. The wide variety of products. Why are more products better than fewer products? The law of one price. Examples of the law of one price. Interest rates, present values and money funds.

UNIT II Forward Markets and Futures Markets Forward Contracts: Payoff diagrams - Valuing Forward contracts - Valuing Futures contracts The relationship between forward and futures prices - Pricing forward contracts - Arbitrage relationships - The term structure of futures prices and basis risk. Hedging with Futures Contracts: Basis risk - Long and Short Hedges - Risk Minimizing Hedges - Issues in Hedging. The

MG Case Study Swaps Options: Option Strategies - Hedging with Options - The Computer Simulation Game - The Wide Variety of Option Contracts.

UNIT III Option Arbitrage Relationships: Pricing Bounds - Put Call Parity - Empirical Evidence. Modeling the Dynamics of Prices: Evolution of Uncertainty - The Geometric Wiener Process - The Binomial Process - Confidence Intervals of Prices over time - Computer Simulations in Excel. Option Pricing Models: The Binomial Option Pricing Model - The Black Scholes Model - Simulating a Lognormal Process - Simulating Option Prices Simulating Exotics

UNIT - IV Pricing Options on Futures, Stock Indices, Foreign Currencies: Impact of Dividends - Mertons Model - Examples on lattices - Risk Management of optioned positions

UNIT V Corporate Securities and Hybrids - Credit Derivatives - Capital Budgeting and the Value of Flexibility - Real Options

REFERENCES: 1. Strong, Robert A: Portfolio Management Handbook, Jaico Publishing House, Bombay, 1994 2. Cox. J. C. and M. Rubinstein: Option Markets, Prentice Hall, Englewood, NJ.

M.B.A (Global Markets and Investment Management)

SECOND YEAR, SEMESTER FOUR

PAPER II

FOREIGN EXCHANGE MANAGEMENT

UNIT I An Overview of Foreign Exchange; Foreign Exchange Market, Exchange Rate System, Euro Currency Market, Participants in Forex Market Intervention by Central Banks Exchange Rate System of Global Level Nature of Euro-Currency Market UNIT II What makes Exchange Rate Move? Exchange Rate Arithmetic and Merchant Rates. Factors affecting Ex-rate Monetary & Fiscal Policy BOP Approach Monetary Approach Chartism Efficient Market Hypothesis: Indian Forex Market Forward Exchange rate Forward Exchange Contract Merchant Rates Types of Rate Guidelines for Computing the Rate Forward Bill Buying rate Crystallization of Export and import Bills Early delivery Extension & Cancellation of Forward Exchange Contract UNIT III Exchange Swap Cover Operating, Exchange Dealings and Currency Position: What are Currency Swaps? Swap Deals in India Trading in Swaps Foreign Exchange Dealing. UNIT IV Foreign Exchange Risk and Management: Transaction Economics and Transaction Exposure Internal Techniques of Managing Foreign Exchange exposure (such as setting, matching Leads and Lap, etc.) External Techniques of Managing Risk (Such as Discounting Foreign Currency Denominated Bills Receivable, factoring Foreign Currency Denominated Receivable, etc.) UNIT V

Exchange Rate Arrangements in India From Basket Pegging to Full convertibility of Rupee on Current account Lessons from Mexican Experience.

REFERENCES: 1. David S. Kidwell, Richard L. Peterson, David W. Blackwell: Financial Institutes, Market and Money, Harcourt Brace Jovanovion, 1993 2. H. P. Bhardwaj, Foreign Exchange Handbook, Wheeler Publishing, 1994 3. Bibek Debroy, The Convertible Rupee & How to Profit form it, Global Business Press. 4. C. Jeevanandam, Foreign Exchange, New Delhi, Sultan Chand & Sons, 1994

M.B.A (Global Markets and Investment Management)

SECOND YEAR, SEMESTER FOUR

PAPER III

COMMODITIES MARKETS

UNIT I: Stock Exchange: History, Meaning, Membership, Organization, Governing body - Functions of stock Exchange: Regulation of stock Exchanges, Recognized Stock Exchanges.

UNIT II: Primary Market & Secondary Market: Objective, Procedure, Stock Option Scheme, New issue Market - Role of SEBI - OTCEI-BSE-NSENSDL-CSDL

UNIT III: Trading in stock Market: Patterns of Trading & Settlement Speculations Types of Speculations Activities of Brokers Broker Charges Settlement Procedure.

UNIT IV: Derivatives: History Participants Derivatives Markets in India

UNIT V: Commodity Market: History, Meaning, Membership, Organization, Governing Body, Features of Products, Types of Transactions to be dealt in commodity Market, Study of Agricultural Produced Market Committee (Krushi Uttpan Bazar Samity)

REFERENCES:
1. Jeff Madura, Financial Markets and Institutions, 5th Ed., South Western College Publishing, 2001 2. Bhole L.M., Financial Markets and Institutions, Tata McGraw Hill, Delhi, 2001 3. Srivastava R.M., Management of Indian Financial Institutions, Himalaya Publishing House, Mumbai. 4. Khan M.Y., Indian Financial System, Tata McGraw Hill, Delhi. 5. Francis, Jack Clark: Management of Investments, McGraw Hill M.B.A (Global Markets and Investment Management)

SECOND YEAR, SEMESTER FOUR

PAPER IV

INTRNATIONAL BUSINESS FINANCE

UNIT I International Monetary and Financial System: Importance of International Finance; Brettonwoods Conference and afterwards, IMF and the World Bank; European Monetary System Meaning and Scope

UNIT II Balance of Payments and International Linkages: Balance of Payments and its components; International flow of goods, services and capital; coping with current account deficit.

UNIT III International Financial Markets and Instruments: International Capital and Money Markets; Money and Capital Market Instruments; salient features of different international markets; Arbitrage opportunities; Integration of markets; Role of financial intermediaries

UNIT IV Foreign Exchange Markets: Determining exchange rates; Fixed and flexible exchange rate system; Exchange rate theories; Participants in the Foreign Exchange markets; Foreign Exchange Market Cash and Spot Markets; Exchange Rate Quotes; LERMS; factors affecting exchange rates spot rates, forward exchange rates, forward exchange contracts; Foreign exchange and currency futures; Exchange rate arrangement in India; Exchange dealings and currency possession; Information and communication; foreign exchange trades

UNIT V International Capital and Money Market Instruments; GDRs, ADRs, IDRs, Euro Loans, Repos, CPs, floating rate instruments, loan syndication and Euro Deposits.

REFERENCES: 1. Apte, P. G: International Financial Management, Tata McGraw Hill, New Delhi 2. Buckley, Adrian: Multinational Finance, Prentice Hall, New Delhi. 3. Eitman, D. K. and A. I. Stenehilf: Multinational Business Cash Finance,

M.B.A (Global Markets and Investment Management)

SECOND YEAR, SEMESTER FOUR

PAPER V

EQUITY RESEARCH

UNIT I Introduction to Investment Analysis Valuation Risk and Return Theories Portfolio Theory CAPM Portfolio Performance Evaluation Current Developments in Capital Markets. Economic and Industry Analysis Macro Economic Environment Economic Developments Globalization- Economic Forecasting Techniques

UNIT II Industry Analysis overview of Industrialization Competitive Analysis Business Cycles Economy Vs Industry and Inter-industry Linkages SWOT Analysis on Sectoral Groups

UNIT III Company Analysis Financial Statement Analysis Forecasting Valuation Models Strategic Analysis Current Developments in technology and Regulatory Environment. Technical Analysis Analysis of Market Dow Theory Market Cycles Analysis of Scripts Trends in swings Performance indicators

UNIT IV

Options Types of Options relationship between Options and Stock Values Warrants and Convertibles Option Pricing. Financial Forwards and Futures Forward Pricing Futures and Spot Pricing - Currency Futures using Stock Index Futures

UNIT V Financial Swaps Bond Swaps Substitution Swaps Gains from Swaps Rate anticipators International Swaps.

REFERENCES: 3. Francis, Jack Clark: Management of Investments, McGraw Hill 4. Strong, Robert A: Portfolio Management Handbook, Jaico Publishing House, Bombay, 1994 5. Cox. J. C., and M. Rubinstein: Option Markets, Prentice Hall, Englewood, NJ.

M.B.A (Global Markets and Investment Management)

SECOND YEAR, SEMESTER FOUR

PAPER VI

FINANCIAL INFORMATION TECHNOLOGY

UNIT I

Basic Concepts of Data, Information and System: Evolution and need of information system. Decision making concepts organizational decision making information concepts as quality product classification of the information methods of data and information collection Human as information processor information system concepts Characteristics of information system types of information system Technology of information systems UNIT II Database Management Systems: Concepts, Structure of Database System Data independence Structure of DBMS Characteristics of DBMS Data Models Relational Model Database Design Database analysis and ER Modeling SQL Normalization Concurrency, Transactions and implementations Metadata Security and DBA Types of DBMS UNIT III Role and Impact of MIS: Role and importance of management Approaches to Management Functions of the Manager Management as a control system MIS & Client Server Architecture Process of Management Planning, Organization, Staffing, Coordination and Controlling Management by Exception MIS as a support to management Organization structure and theory Basic model and organization structure Organizational Behaviour UNIT IV System Analysis and Design: Need for System Analysis System Analysis of existing system System Development Model Structured Systems Analysis and Design Development of MIS. Development of Long Range Plans of the MIS. Deterministic Systems: Artificial intelligence Knowledge Based Expert System MIS and the role of DSS Enterprise Management Systems EMS Enterprise Resource Planning (ERP) System ERP Basic Features Benefits Selection Implementation UNIT - V Financial Information System: Concepts Financial Decision Support System Financial Decision Process - Internet and Web Based information System Electronic Commerce -= Electronic Business Commercial applications Information system in Banks Case Studies REFERENCES: 1. Jerome Karnter., Management Information System, III Edition, PHI, 1990 2. EffyOz., Management Information Systems, Thomson Learning, 2001. 3. C.J. Date, An Introduction to Database Systems, Pearson Addison Wesley, Eight Edition, 2003. 4. Kenneth C. London and Jane P. Laudon, Management Information Systems, Prentice Hall, Sixth Edition, 2000.