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

2. Plan of today’s lecture
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

3. Exchange Rate forecasting
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

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