AU kursuskatalog arkiv

4735: Topics in International Finance ( forår 2009 - 5 ECTS )

Rammer for udbud

• Uddannelsessprog: engelsk
• Niveau: COURSE LEVEL: Optional Master's level course.  
• Semester/kvarter: SEMESTER FOR WHICH THE COURSE DESCRIPTION APPLIES: Spring 2009.  
• Timer per uge: NUMBER OF HOURS PER WEEK: 4 hours per week for 6 weeks, total of 24 lectures.  
• Deltagerbegrænsning: RESTRICTIONS ON ADMISSION: None.  
• Undervisningssted: Århus
• Hovedområde: Det Samfundsvidenskabelige Fakultet
• Udbud ID: 15625

Formål

LEARNING OBJECTIVES:

After following this course, students should be able to

Explain different types of markets in an international framework, like spot
exchange markets, forward and futures markets, and other currency derivative markets

· Interpret the determination of exchange rates and how to measure the
exposure to exchange rate risk

· Apply different currency derivatives (forward and futures, options, swaps etc.) to hedge exchange rate risk

· Explain the concept of international risk management and different risks faced by firms

· Formulate and apply the international CAPM and adjusted NPV method to
evaluate international projects.

Indhold

COURSE DESCRIPTION:

International finance has played a more and more important role in modern financial markets. A spectacular growth in foreign exchange markets, euromarkets and international bond markets has been accompanied by an increase in international activity by multinational firms. This requires corporate managers to take international finance into their decision-making procedure. It is closely related to international risk management. The focus of their concerns is on issues such as whether firms face exchange rate risk, how to measure the exposure of firms to this risk and how to use
derivatives to hedge this risk. Another important topic is international capital
budgeting, which has become a crucial task for many corporate managers. While the standard NPV framework still provides intuition for evaluating international projects, it must be adjusted to include risk in an international framework, and the extent to which the CAPM can be applied in an international context with exchange rate risk and/or segmentation of financial markets should be carefully analyzed.

COURSE SUBJECT AREAS:

1. Fundamentals of international financial markets.
2. Fundamentals of international risk management.
3. Determination of exchange risk and measurement of exposure to exchange rate risk.
4. Currency derivatives and their application in hedging exchange rate risk.
5. International capital budgeting.
6. International CAPM and adjusted NPV approach.

Faglige forudsætninger

REQUIRED COURSES (progression):

4078: Investments.

Underviser

LECTURER:

Jie Zhu.

Undervisnings- og arbejdsform

TEACHING METHOD:

Lectures and discussion of cases.

Litteratur

LITERATURE:

Sercu, P. & R. Uppal: International Financial Markets and the Firm, South-Western College Publishing, Chapters 1 - 10, 11, 14, 16, 17, 18, 21, 22, 24

Lecture Notes and other related articles (approx. 450 pages).

Bedømmelse

• Mundtlig, bedømt efter 7-skala med intern censur
5 xxxxx

FORM OF ASSESSMENT:

Oral examination.

EXAMINATION AIDS ALLOWED:

All - except any means of electronic communication including PCs.