Aims

At the end of the class, students should be able to
-understand the relations between financial statements and cash management,
-evaluate the exchange risk,
-manage the interest rate volatility,
-hedge using various instruments: swap contracts, option and future contracts.

Content and teaching methods

Content

The scope of short term financial planning

-Operating cash and net working capital
-The cash budget
-Short term financial planning-

Foreign Exchange Rates
Forward rates and future spot rates
Managing exchange rate risks

Interest rates volatility
Hedging short run exposure
Forward contracts
Future contracts
Swap contracts
Option contracts

Credit and receivables
Term of sale
Collection policy
Credit analysis
Credit information and collection policy

Other information (prerequisite, evaluation (assessment methods), course materials recommended readings, ...)

Prerequisites : Backgrounds in financial statements
Evaluation : oral examination and some reading
Support : notes available

Other credits in programs