1. Be able to write a brief overview of global currency market structure.
2. Be able to discuss a range of arbitrage issues as they relate to currency markets
3. Be able to explain the differences between gross and net currency risk exposures for a multinational corporation.
4. Be able to describe the basic characteristics of currency hedging tools: forwards, futures, swaps, options and more complex options (caps, floors, collars), as well as “natural hedges” on a corporation’s balance sheet.
5. Discuss the importance of exchange rate forecasting for hedging currency exposure.