Finance 319 Lecture 6 (cont.)

1/25/01


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Table of Contents

Finance 319 Lecture 6 (cont.)

Practical Matters: Investment History Video

Lecture Summary: International Parity Conditions

Perfect Capital Markets (PCM): a reminder

Violations of PCM hypothesis

Why PPP could hold?

Violations of PPP hypothesis

Why are PPP & PCM related?

Next Lecture: Interest Rate Parity

Summary of Today

Author: Galina Albert Schwartz

Email: galka@umich.edu

Home Page: http://www.citi.umich.edu/u/galka

Other information:
*****Winter 2001 Teaching ***** International Finance: M & Wed 8:30 - 10:00 Game Theory Applications to Finance and Consulting Cases T & Th 3:00 - 4:30

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