IF2020

International Finance Course – 2020

LAST UPDATED ON APRIL 6, 10:53 AM

 

YOUR FINAL ASSIGNMENT/EXAM IS DUE APRIL 20th at midnight – NO EXCEPTIONS!

 

FINAL EXAM

READ THIS: International Finance Final Assignment 2019-2020

 

EXAMPLE: International Finance – Final Assignment – South Africa – Example (obviously, no one may pick South Africa as their country).

 

IMPORTANT UPDATE:

Question 3 of the final assignment ask for : 3°) Plot on one unique graph, the year on year Consumer Price Index change (in percentage) for the USA and for your country since 2003. On another graph, plot the relative PPP[1] since 2003 as well as the FX rate (take year 2003 as base 100). Comment (4 points).

Some students may have questions about the relative PPP. Relative PPP is about the relative evolution of the PPP. Then in order to plot it, one must take the absolute PPP, rebase it 100 in year 2003 and plot its evolution. [IF ARE HAVING PROBLEMS UNDERSTANDING PPP HAVE A LOOK AT THE FOLLOWING LINK: PPP

In the provided sample report, the capital account is mentioned although there is no explicit question about it in the assignment. It is on purpose and questions 6 and 7 will require you to analyze the capital account in addition to the current account in order to explain the FX rate.

 

FINAL EXAM GROUPS

1. LOOK AT THIS UPDATED EXCEL SHEET TO YOUR CURRENCY AND YOUR TEAMS. 

https://docs.google.com/spreadsheets/d/14vkkCHiqMRUaG1qUonghtyJ2d5zYTCxABwJDIMp7jQI/edit?usp=sharing

 

2. I HAVE GONE THROUGH YOUR ORIGINAL SUBMISSIONS AND PICKED THE FIRST COUNTRY YOUR CHOOSE. YOU MAY CHANGE THIS IF YOU WISH (SEE #3 BELOW).

 

 

3. YOU MUST VERIFY THE INFORMATION ON THE SPREADSHEET! DO NOT EMAIL ME. IF THERE IS A PROBLEM, ENTER THE CORRECTION IN THE SPREADSHEET. ALL CORRECTIONS MUST BE MADE BY THURSDAY, APRIL 9TH AT 5 PM PARIS TIME. ONLY TEAM LEADERS SHOULD MAKE CHANGES.

https://docs.google.com/spreadsheets/d/14vkkCHiqMRUaG1qUonghtyJ2d5zYTCxABwJDIMp7jQI/edit?usp=sharing

 

 

4. ONE TEAM NEEDS TO CHOOSE A NEW COUNTRY. YOUR COMPARISONS NEED TO BE COUNTRY X:USA. YOU CAN NOT COMPARE USA:USA.

 

 

5. ONE TEAM NEEDS TO ADD A PERSON. DO THIS ASAP. IF YOU HAVE NOT DONE SO BEFORE THE CLASS I WILL ASSIGN SOMEONE TO YOUR GROUP.

 

 

Here are the Zoom links for the classes this week.

 

If you are in India and China please attend the class. The time difference makes it later but certainly not impossible to participate.

Wednesday, April 8th from 8:00 AM – 11:15 PM

Join Zoom Meeting
https://zoom.us/j/443221021?pwd=NElLb2MraFFycllISFFMclE1eEExUT09

Meeting ID: 443 221 021
Password: 200713

 

Wednesday, April 8th from 1:15 PM – 4:30 PM

Join Zoom Meeting
https://zoom.us/j/810801380?pwd=KzIvRXNiVTI2U0Q5eC9aMkp2NGFZQT09

Meeting ID: 810 801 380
Password: 840569

 

Thursday, April 9th from 9:45AM – 1:00 PM

Join Zoom Meeting
https://zoom.us/j/685051040?pwd=NnBkcnREZGFYbFA2eUk0cHY2Q1VsZz09

Meeting ID: 685 051 040
Password: 962187

 

BOOKS

PRINCIPALS OF CORPORATE FINANCE 10th Edition END0420010013

Economics_for_Investment_Decision_Makers

 

CLASS PRESENTATIONS SLIDE DECKS:

DECK 1: Background, GDP, GNP, BOP

DECK 2: REVISED DECK – WITH DETAILED TRIANGULAR SOLUTION:

Exchange Rates And Economic Adjustments

DECK 3: REVISED DECK FX Markets

Mid-term Exam

DECK 4: REVISED DECK Derivatives Markets  

DECK 5: Bond Markets

Shame on you for not having tried to download Deck 5 before the class. Turns out it was the same as Deck 6 and only one student noticed. Please see the decks BEFORE the class and do the HW deck too!

DECK 6: World Equity Markets

 

SAMPLE QUESTIONS – PRACTICE THESE!

REVISED International Finance – HW1 – GDP PK V2

REVISED International Finance – HW2 – BOP PK V2

REVISED International Finance – HW3 – FXRates PK v3

NEW REVISED #2  International Finance – HW4 – FXmarket PK v4

MID-TERM EXAM

REVISED International Finance – HW5 – derivativesmarket PK V2

International Finance – HW6 – bondsmarket

International Finance – HW7 – worldequitymarket

 

 

SAMPLE EXAM

white test

white test – solution

NEW White test with solution

READING

Big Mac Index The Economist 20110731

Burgernomics A big Mac guide to PPP Pakko and Pollard 2003

Is a Bloated Current Account Surplus the New German Disease_ – Real Time Economics – WSJ 20140729

NYT-122016 Reading – topic1 – NYT-122016

WSJ 20140729 Is a Bloated Current Account Surplus the New German Disease_ – Real Time Economics – WSJ 20140729

 

OLD HOMEWORK ASSIGNMENT: THE INSIDE JOB and DERIVATIVES:

Prior to the class please upload your assignments for the Inside Job and Derivatives. Upload a pdf. Maximum of 1 page each.

LINK TO UPLOAD YOUR HOMEWORK ASSIGNMENT FOR THE INSIDE JOB and DERIVATIVES:

https://docs.google.com/forms/d/e/1FAIpQLSfdnP3OC2q36l_W0NvdXo6pdg3E-8GNjAJ6TQLQ4BhYKYvItg/viewform?vc=0&c=0&w=1

 

The Derivatives homework should take you about 10 minutes.

  1. See the movie Inside Job. Write a one-page summary of what happened AND your observations or thoughts. Use bullet points. At the end of the one-pager, list three questions about the movie. Turn it into a PDF and give it the name LASTNAMEfirstname_inside_job
  2.  Download the following document – DERIVATIVES HOMEWORK ASSIGNMENT V2 – fill it in. Turn it into a PDF and give it the name: LASTNAMEfirstname_home

 

ALL ITEMS BELOW ARE OLD AND NO LONGER APPLY. THEY ARE HERE FOR REFERENCE ONLY:

 

 

IF2020 – FINAL EXAM GROUPS – EXCEL V2

If your currency is in gray you must pick a new currency by filling out the below form.

Your team must have 4 to 5 team team members. If you are only 3, contact other teams with 5 members and see if someone will join your team. Or if you are five members and wish to join another team then contact the team leader. Please fill in the below form again.

 

Please have the leader of your group fill in this form. ONLY the leader of the group should fill in the form.

https://docs.google.com/forms/d/e/1FAIpQLScQ3uP4e_vh5FG2eGYF2N-Ffdl_B6CvipzLNmz9JHEQSh2W7Q/viewform?vc=0&c=0&w=1

I will post the countries that are chosen. If more than two teams pick the same country I will notify you at www.boilingice.com/startup/if2020 The form is timestamped so those that fill in their country choice quickly have a better chance of actually getting it.

If you are having problems forming a team please go to K2 and communicate with your TD to see who is available. You can ONLY form a team with other members of your TD, you can NOT join a team on another TD.

Prior to the class please upload your homework assignments below. Upload a pdf. Maximum of 1 page each.

 

HOMEWORK FOR WEEK OF MARCH 30

 

HOMEWORK ASSIGNMENT DUE NEXT CLASS: PANDEMIC BOND AND RECOMMENDED TRADES

  1. READ the article on Pandemic bonds at https://apnews.com/9b6191d5d82145c237b470525e2e9515
    Write a one-page maximum summary touching on the following three points. Use bullet points to summarize your thoughts! Turn your one-page summary into a PDF and you will upload it at the beginning of the next class at the latest. See below for the link.

    1. Why is the bond good for investors?
    2. Why is the bond bad for the people it was supposed to help?
    3. How is 1 and 2 possible?
  2. Upload a one-pager that answers the following questions. ALSO, fill out the Google form below with your ideas on the following trades. I need to have a one-page PDF with all your answers and ALSO your answers in the Google Form below so I can easily see all your ideas in one place.
    1. suggest one equity that is a good buy right now in the market, and tell me why in one or two sentences.
    2. suggest one bond that is a good buy right now in the market, and tell me why in one or two sentences.
    3. suggest one currency that you think is undervalued or overvalued now and tell me why in one or two sentences.

 

SEE THE FOLLOWING LINK TO UPLOAD YOUR HOMEWORK ASSIGNMENT FOR THE PANDEMIC BOND and THE RECOMMENDED TRADES:

https://docs.google.com/forms/d/e/1FAIpQLSfk20Ic_Pid-6dbNnJqQxVvIkkvX-CSKmyNDn2nVum2Ok8_SA/viewform?vc=0&c=0&w=1

 

RULES FOR UPLOADING:

  • The file should be called LASTNAMEfirstname_pandemic and LASTNAMEfirstname_trades
  • Each file must be a PDF
  • Each file should not be longer than 1 page

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