Lecture 2 Offshore and onshore markets

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Presentation transcript:

Lecture 2 Offshore and onshore markets 10.30.2000 Lecture 2 Offshore and onshore markets Galina A Schwartz Department of Finance Business School University of Michigan Finance 614: Lecture notes

Plan of today’s lecture 10.30.2000 Plan of today’s lecture Exchange rate forecasting LTCM crisis Start of Onshore markets Offshore markets Comparison of onshore and offshore Levich, chapter 9 Finance 614: Lecture notes

Exchange Rate forecasting 10.30.2000 Exchange Rate forecasting Levich, chapter 8, (S) Example from 612 final exam Random walk? Not exactly – [random walk with a drift] Finance 614: Lecture notes

LTCM Myron Scholes – insider 10.30.2000 LTCM Myron Scholes – insider B.Kho, D. Lee, R. Stulz – more informative? [It is a rule rather than an exception] Finance 614: Lecture notes