Master of Commerce (M.Com.) Forex Foreign Exchange Rate Management and Derivatives Syllabus - Mumbai University 2026
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Syllabus for Forex Foreign Exchange Rate Management and Derivatives
Module I: Foreign Exchange Rate Mechanism (2 credits)
- Unit 1 Introduction to Foreign Exchange Rate Foreign Exchange, concepts, significance of foreign exchange- FOREX RESERVES- Exchange rates- inter banks and Merchant rates- spot and forward rated-TT rates- computations-FOREX Markets— derivates in the FOREX markets- Futures, Swaps, Options and Arbitrage- Forex dealers and Speculators Organisations of the FOREX market. FOREX Management in India- Fixed and fluctuating rates-rupee convertibility NOSTRO-VOSTRO-LORO Accounts-
- Unit 2 Calculation of Foreign Exchange rate Foreign exchange risk, different types of foreign exchange exposure, Foreign exchange risk management (FERM), Fundamental hedging principles, Forward Contracts, Difference between forward contracts and futures contract, Direct Quote V/s Indirect Quote, Calculation of Cross Currency Quotes, Interest Rate Arbitrage, Premiums & Discounts (Appreciation / Depreciation of Currencies), Nostro A/c & Vostro A/c, Hedge Using Futures. (Practical Problems)
Module II: Derivative Market (2 credits)
- Unit 1 Basics of Derivatives, Evolution of derivatives, Indian derivatives Market, Market participants, Types of derivatives market, Significance of derivatives, Various risk faced by the participants in derivatives.
- Unit 2 Understanding Index Significance and economic purpose, Types of Indices, Attributes of an Index and concept of impact cost, . Index management, Major Indices in India such as Nifty 50, Sensex , Nifty Next 50 , Nifty Bank ,Nifty IT, Nifty Auto, Nifty FMCG , Nifty Pharma , Nifty Midcap 150 , Nifty Smallcap 100 and Applications of Index.
References
- 1 Apte, P. G. (2022). International Financial Management (8th ed.). Tata McGraw Hill Education.
- 2 Shapiro, A. C., & Moles, P. (2023). International Financial Management (13th ed.). Wiley.
- 3 Eiteman, D. K., Stonehill, A. I., & Moffett, M. H. (2021). Multinational Business Finance (15th ed.). Pearson.
- 4 Jeevanandam, C. (2022). Foreign Exchange: Practice, Concepts, and Control (2nd ed.). Sultan Chand & Sons.
- 5 Bhalla, V. K. (2020). International Financial Management: Text and Cases (11th ed.). Anmol Publications.
- 6 Hull, J. C. (2022). Options, Futures, and Other Derivatives (11th ed.). Pearson.
- 7 Sundaram, R. K., & Das, S. M. (2021). Derivatives Principles and Practice (2nd ed.). McGraw Hill Education.
- 8 Kolb, R. W., & Overdahl, J. A. (2018). Futures, Options, and Swaps (6th ed.). Wiley.
- 9 Mishra, R. C. (2022). Derivatives Market in India: Opportunities and Challenges (1st ed.). Sage Publications.
- 10 Chandra, P. (2021). Financial Management (10th ed.). Tata McGraw Hill Education. Paper Pattern for 4 Credits: Sr No Nature of Bifurcation of Marks Total Examination Marks I Continuous Evaluation Sr No Examination Marks 1 Class Test 20 2 Project Presentation / Viva / 20 Assignment / Case Study 3 Active Attendance & 10 Participation 2 Semester End Question Paper Pattern Module Marks /Unit No 1 Solve ( 1 out of Module-I 14
- 2 Unit-1 2 Solve ( 1 out of Module-I 12
- 2 Unit-2 3 Solve ( 1 out of Module-II 12
- 2 Unit-1 4 Solve or Short Module-II 12 Notes ( 1 out 2 ) Unit-2 For Theory Subjects ,question per unit may be Sub Divided into 4 marks each from sub modules Total 100 Letter Grades and Grade Points:
Reproduced from the University of Mumbai syllabus for M.Com. (Advance Accountancy) under NEP 2020, in force from the academic year 2023-24. Wording is as printed in that syllabus. Module numbering is as printed there too.
The complete syllabus
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