FNAN 440 Master Syllabus

Costello College of Business Logo

FNAN 440: International Financial Management Master Syllabus

Course Instructor:
Office Number:
Office Hours:
Email:
Course Meeting Times:
Course Materials: 

  • Textbook:
    • Eun, Resnick, and Chulun, International Financial Management, 2021, 9th edition, McGraw-Hill Education.
    • Note: As business students, it is also recommended that you read business publications such as Business Week, Financial Times, Forbes, Fortune, The Wall Street Journal, etc. on a regular basis. 
  • Calculators:
    • For this course you will need a financial calculator capable of performing present value/future value-type analysis.  For example, the Texas Instruments BA-II Plus Calculator is a relatively inexpensive option (approximately $30) that meets these criteria.  Many other calculators are also suitable. 

Course Website: Canvas

Course Description

The primary focus of this course is international financial management.  Topics to be covered include exchange rate determination and parity conditions; currency futures, forwards, swaps and options; international portfolio theory; methods for managing exchange rate exposure; and capital budgeting for the multinational firm.

General Course Topics

  • Introduction 

  • The International Financial Environment 

  • FX Rates, Forwards, Futures, and Options 

  • International Investments 

  • FX Exposure Management 

  • Multinational Capital Budgeting

Learning Goals

  1. Our students will demonstrate an understanding of the social, global, ethical, and legal contexts of business and will be able to reflect on the role of the individual in business. 
     
  2. Our students will demonstrate an understanding of and the ability to apply knowledge of professional skills necessary for success in business including effective business writing. 
     
  3. Our students will demonstrate technical and analytic skills appropriate for success in business. 
     
  4. Our students will demonstrate an understanding of and the ability to apply knowledge of core business disciplines including accounting, finance, information systems, management, marketing, and operations management. 
     
  5. Our students will demonstrate knowledge and skills appropriate for specialization in their majors.
     
  6. Our students will demonstrate an understanding of how research in the business disciplines contributes to knowledge and how such research is conducted.

Course Requirements and Grading

Specific week-by-week assignments are on the attached page.  While we may deviate slightly from this schedule, it provides the basic structure for the course.

During the term, you will be evaluated on the basis of class participation, homework assignments, a group project, and three exams.  All assignments must be submitted by the date due.  No late assignments will be accepted.  In addition, you are expected to adhere to the Honor Code. 

  1. Class Participation/Attendance: You are expected to attend class on a regular basis and contribute to class discussions.
     
  2. Homework:  There will be four graded homework assignments.  Three will be completed on Blackboard (#1, 2, and 4).  You are allowed three attempts on each of these assignments.  One homework is an Excel spreadsheet assignment (#3) that will be graded by me.  You are allowed only one attempt on the spreadsheet assignment. You may work with others completing homework assignments, although each student must submit his/her own set of solutions for grading.
     
  3. Project/presentation:  Project groups will be formed at the beginning of the semester and each group will prepare a well-written report on one of three (to be assigned) topics.  (Maximum length of the report:  10 pages, double-spaced with 12 point font and 1” margins – not including the Executive Summary, References and Exhibits sections).  On the date your project is due, your group will also provide a (maximum) 30 minute presentation of your analysis.  This presentation will count for 5 percentage points of your project grade; the paper will count for 15 percentage points.  At the end of the semester a "Peer Evaluation Form" will be distributed for rating the relative contribution of each of your case group members. These ratings will be utilized when determining each student’s overall project grade.  Your project analysis must be original work, properly cite any/all information sources, and comply with the Honor Code.  On the day your group’s report is due, you must email me a copy (prior to class).
     
  4. Exams: There will be three exams during the term.  The third exam is a comprehensive exam.  Exams will primarily contain multiple choice questions. Exams will require the use of Respondus Lockdown browser and a webcam. The webcam can be built into your computer (internal webcam) or can be the type of webcam that plugs in with a USB cable (external webcam). Students are responsible for ensuring that their computer is adequately set up to take exams using this method.

Grade Determination (using the +/- system)

Participation/Attendance 5%
Homework 10%
Project/Presentation 20%
Exams 1 and 2 (equally weighted) 35%
Exam 3** 30%
  100%

**  note:  if a student’s grade on comprehensive Exam 3 is higher than the average of their grades on the Exams 1 and 2, the final exam will be given a weight of 35% and Exams 1 and 2 will be given a weight of 30%. 

ODS Statement

If you are a student with a disability and you need academic accommodations, please see me and contact the Office of Disability Services (ODS) at (703) 993-2474.  All academic accommodations must be arranged through the ODS. 

Schedule (Sample)

Week Topic Chapter
1 Introduction / The Market for Foreign Exchange (FX) 5
2 The Market for FX, cont’d / Parity Conditions in International Finance 5, 6
3 Parity Conditions in International Finance, cont’d 6
4 Futures and Options 7
5 Future and Options, cont’d / Transactions Exposure 7, 8
6 Transactions Exposure, cont’d/ Exam 1 (Chs 5, 6, 7) 8
7 Transactions Exposure, cont’d / Economic Exposure 8, 9
8 Project 1 / Economic Exposure, cont’d/Translation Exposure  9, 10
9 Project 2 / International Portfolio Theory 15
10 Project 3 / International Portfolio Theory, cont’d  15
11 Swaps / Exam 2 (Chs 8, 9, 10, 15) 14
12 Swaps / International Capital Budgeting 14, 18
13 International Capital Budgeting, cont’d  18
14 International Capital Budgeting, cont’d /Special Topics/Review  18
TBD Exam 3 (Comprehensive) 10:30am – 12:30pm  

School of Business Recommendations for Honor Code Violations 

Approved May 2016

UG-Non Freshman Students (including transfer students)
Type of Violation First Offense Second Offense

Plagiarism

  1. Failure to cite/attribute sources
  2. Representing someone else’s work as the student’s own (e.g., copying and pasting) 
 An F in the class; referral to Writing Center; and Academic Integrity Seminar completion  An F in the class; referral to the Writing Center; Academic Integrity Seminar completion; termination from the School of Business; and at least one semester suspension or expulsion  

Cheating

  1. On a minor assignment (e.g., homework, quizzes)  
  2. Cheating on a major assignment or exam, submitting course work from another course as original work 

An F in the class; and Academic Integrity Seminar completion  

An F in the class; and Academic Integrity Seminar completion, and at least one semester suspension

 An F in the class, Academic Integrity Seminar completion; termination from the School of Business; and at least one semester suspension or expulsion 
Lying (e.g., providing fraudulent excuse documents, falsifying data) An F in the class; and Academic Integrity Seminar completion, and at least one semester suspension An F in the class; Academic Integrity Seminar completion; termination from the School of Business; and at least one semester suspension or expulsion 
Egregious Violation (e.g., stealing an exam; submitting coursework from another class as original work across multiple courses; lying to an employer about academic performance, false identification or posing as another, in person or online)  An F in the class, Academic Integrity Seminar completion; termination from the School of Business; and at least one year suspension  An F in the class; Academic Integrity Seminar completion; termination from the School of Business; and expulsion 

To print: Right-click and choose “Print,” then follow your browser’s print settings.
To download: Right-click and choose “Print,” then select “Save as PDF.”