| Course title | Financial Markets and International Finance |
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| Course code | KUF/SZFTM |
| Organizational form of instruction | no contact |
| Level of course | unspecified |
| Year of study | not specified |
| Semester | Winter and summer |
| Number of ECTS credits | 0 |
| Language of instruction | Czech |
| Status of course | unspecified |
| Form of instruction | Face-to-face |
| Work placements | This is not an internship |
| Recommended optional programme components | None |
| Lecturer(s) |
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| Course content |
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FT: 1. Financial markets in the economic system, the function of financial markets. Typology of financial markets, money and capital market. 2. Types of financing, financial intermediaries, service brokerage firms. 3. Types of investments, investment instruments, securities, investment decision criteria. 4. Characteristics of equity securities, risk, return, liquidity, types of shares, the rights attached to the shares, securities, joint stock companies, units. 5. Characteristics of debt securities, short-term and long-term bonds, special types of bonds, interest on bonds, bond analysis. 6. Ties of the economic system, sectoral factors and factors of corporate securities market. 7. Intrinsic value, market price, the issue price of the securities, undervalued and overvalued securities, investment recommendations. 8. Types of speculation, short sales, purchases of securities on loan, bear and bull markets. 9. Modern technical analysis, Dow Theory Ch H.; analysis of securities versus the theory of efficient markets 10. The role of intuition and psychological factors in the financial markets, psychological concepts, speculative bubbles in the markets and the impact of the economy. 11. Specifics exchange trading, exchanges classification, segments of stock exchanges, development of exchange trading. 12. The capital market in the Czech Republic, trends and prospects for further development of financial markets in the world. 13. Collective investment and development in the world and developments in the Czech Republic, institutions and collective investment securities, types of funds. MFIN: 1. Balance of payment, definition, meaning and structure. International trade balance. Foreign debt, foreign Exchange market, foreign Exchange rate. 2. Foreign exchange market, subject of foreign Exchange market, foreign Exchange quotation, Basic types of transactions in the foreign exchange market. 3. First Central bank intervention in the foreign exchange markets. Effect of foreign exchange intervention in shaping the central bank rate. 4. Exchange rate regime, international monetary systems. 5. The Low of One Price, arbitrage, purchasing power parity, equilibrium Exchange rate, inflation differential. 6. Fisher effect, uncovered interest rate parity condition, uncovered interest rate arbitrage condition. Forward rate and future spot rate relationship. Real interest rate. 7. Hedging of foreign Exchange exposure, currency forwad, currency futures, currency options, long and short position, clearing centrum, Exchange traded options, listed options, option premium. 8. Currency forward 9. Swap operations; foreign exchange options, currency swap, fixed -for-fixed currency swap, fixed for floating currency swap, floating for floating currency swap. 10. Currency futures and currency options markets. 11. Currency option, option premium, time and intrinsic option value. In the money, at-the money, out of the money option.
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| Learning activities and teaching methods |
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| Learning outcomes |
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The main aim of this course is to provide students with knowledge of the main characteristics of financial market, its function in the economy, segmentation and operations in this market. Students are also introduced to basic theories of financial markets (CAPM, Portfolio theory, Theory of efficient market), problems of collective investment and analysis of financial instruments (technical, fundamental, psychological). The second aim of course is to acquaint students with the effects of the open global economy on the international flows of goods, services and investments and on the decision-making and behaviour of firms. Nowadays, there is no doubt, that the business world is international. Advances in information exchange have created one global economy, accessible to all investors. This situation increases the number and complexity of the financial decisions managers must make to be successful.
Students know basic terminology, theoretical principles, and method used in the field of , financial market and international financie. Students are able to apply the acquired knowledge in practice. |
| Prerequisites |
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(KUF/FT Financial market, KUF/MFIN International finance)
KUF/CFTR ----- or ----- KUF/FT ----- or ----- KUF/FTR ----- or ----- KUF/KFT and KUF/CMFN ----- or ----- KUF/KMFIN ----- or ----- KUF/MFIN ----- or ----- KUF/MFN |
| Assessment methods and criteria |
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Oral examination
Student must to prove their complex understanding of the basic terminology and principles of international finance and financial markets. They have to be able to respond to particural questions and to apply theoretical knowledge in practical examples. |
| Recommended literature |
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| Study plans that include the course |
| Faculty | Study plan (Version) | Category of Branch/Specialization | Recommended semester |
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