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
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.
- Class Participation/Attendance: You are expected to attend class on a regular basis and contribute to class discussions.
- Homework: There will be four graded homework assignments. Three will be completed on Canvas (#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.
- 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).
- 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%.
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 |
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.”