INTERNATIONAL FINANCE THEORY INTO PRACTICE PIET SERCU Bankowa.pl

International Finance presents the corporate uses of international financial markets to upper undergraduate and graduate students of business finance and financial economics. Combining practical knowledge, up-to-date theories, and real-world applications, this textbook explores issues of valuation, funding, and risk management. International Finance shows how theoretical applications can be brought into managerial practice.

The text includes an extensive introduction followed by three main sections: currency markets; exchange risk, exposure, and risk management; and long-term international funding and direct investment. Each section begins with a short case study, and each of the sections' chapters concludes with a CFO summary, examining how a hypothetical chief financial officer might apply topics to a managerial setting. The book also contains end-of-chapter questions to help students grasp the material presented.

Focusing on international markets and multinational corporate finance, International Finance is the go-to resource for students seeking a complete understanding of the field.

Rigorous focus on international financial markets and corporate finance concepts
An up-to-date and practice-oriented approach
Strong real-world examples and applications
Comprehensive look at valuation, funding, and risk management
Introductory case studies and "CFO summaries," and end-of-chapter quiz questions
Solutions to the quiz questions are available online

Table of Contents

Pt. I Introduction and Motivation for International Finance 1

Ch. 1 Why Does the Existence of Borders Matter for Finance? 3

Ch. 2 International Finance: Institutional Background 16

Pt. II Currency Markets 63

Ch. 3 Spot Markets for Foreign Currency 69

Ch. 4 Understanding Forward Exchange Rates for Currency 115

Ch. 5 Using Forwards for International Financial Management 157

Ch. 6 The Market for Currency Futures 202

Ch. 7 Markets for Currency Swaps 239

Ch. 8 Currency Options (1): Concepts and Uses 262

Ch. 9 Currency Options (2): Hedging and Valuation 299

Pt. III Exchange Risk, Exposure, and Risk Management 337

Ch. 10 Do We Know What Makes Forex Markets Tick? 342

Ch. 11 Do Forex Markets Themselves See What Is Coming? 398

Ch. 12 (When) Should a Firm Hedge Its Exchange Risk? 434

Ch. 13 Measuring Exposure to Exchange Rates 454

Ch. 14 Value-at-Risk: Quantifying Overall Net Market Risks 493

Ch. 15 Managing Credit Risk in International Trade 530

Pt. IV Long-Term International Funding and Direct Investment 551

Ch. 16 International Fixed-Income Markets 558

Ch. 17 Segmentation and Integration in the World's Stock Exchanges 595

Ch. 18 Why - or When - Should We Cross List Our Shares? 641

Ch. 19 Setting the Cost of International Capital 663

Ch. 20 International Taxation of Foreign Investments 703

Ch. 21 Putting It All Together: International Capital Budgeting 739

Ch. 22 Negotiating a Joint-Venture Contract: The NPV Perspective 777