FIN341 Foreign Exchange Markets

This subject provides students with a broad knowledge of the workings of the foreign exchange market including the structure of the market, principal participants and the products most widely used for managing risk and/or trading for profit. Students will gain a working knowledge of the mathematical calculations underlying market transactions including spot, forwards and currency options.

This subject contributes to the financial markets major.

For more information, please refer to the subject outline.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      • Outline the structure of the global foreign exchange market, the principal participants, and the future direction of product delivery.
      • Compare the difference between the use of foreign exchange risk management techniques for foreign exchange exposures for corporations and banks.
      • Calculate fundamental methods of foreign exchange exposure hedging.
      • Determine market risks and exposures for foreign exchange products.
      • Demonstrate the applications of foreign currency options.
  • Subject content
    • Topic Title
      Topic 1 The foreign exchange market
      Topic 2 Spot transactions
      Topic 3 The foreign exchange forward market
      Topic 4 Forward transactions – applications
      Topic 5 Foreign currency borrowings
      Topic 6 Foreign currency options
      Topic 7 Identifying foreign exchange risk
      Topic 8 Foreign exchange risk management
  • Assessment
  • Prerequisites
    • Students enrolling in a Masters level elective subject are assumed to have the pre-requisite knowledge in the three core subjects (FIN101, FIN102, FIN103 and FIN114 (for students enrolled before 2014)).

  • Course transition subject equivalence
    • Students who transition from a SIA/Finsia/Kaplan course and have completed the following subject within the course completion time frame may not also complete the subject:

      • E111 Foreign Exchange Markets and Trading
      • FIN241 Foreign Exchange Markets
  • Reading list
    • There are no prescribed texts for this subject.

      Details of any required and further readings for this subject are provided in the subject room.  Purchase of any text other than a prescribed text is not required.