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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 330 "
COURSE NAME: "International Finance "
SEMESTER & YEAR: Fall 2018
SYLLABUS

INSTRUCTOR: Manzur Rahman
EMAIL: [email protected]
HOURS: TTH 8:30AM - 9:45 AM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS:
PREREQUISITES: Prerequisite: FIN 301
OFFICE HOURS:

COURSE DESCRIPTION:
The course emphasizes the structure and analysis of international capital and financial markets, Euro-currency financing, and the financing of international transactions.
SUMMARY OF COURSE CONTENT:
This is a survey course of international financial management.  The course will begin by examining the international financial environment with emphasis on the institutional details of the foreign exchange market.  Attention will then be focused on various aspects of financial management of multinational corporations including exchange risk management, global financing and investment decisions, and usage of the multinational financial system.
LEARNING OUTCOMES:

 

·      Foreign Exchange Market – Knowledge of the various foreign exchange markets, including valuation and use of specific contracts;

·      International Monetary Environment – Gain familiarity with the current international monetary system and the relationship of exchange rates with other economic factors;

·      Exchange Risk Management – The evaluation and management of currency risks faced by the firm;

·      Global Financing – Familiarity with the international capital markets and common financing techniques;

·      Multinational Cost of Capital – Estimating cost of financing for cross-border capital expenditures;

·      Multinational Financial System – The design and use of multinational fund-flow mechanisms to generate cross-border arbitrage profits;

·      Multinational Capital Budgeting – The evaluation and selection of cross-border investments;


TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberComments
Fundamentals of Multinational Finance, 6eMoffett, Stonehill, & EitemanPearson978-0-13-447213-3 Note that the chapter pages called out as well as the suggested textbook questions and problems are based on the 6th edition of the text.
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Exam 1Introduction and International Monetary Environment25%
Exam 2Exchange Risk Management & Financing30%
Final ExamFinancial Decisions of MNCs and IB Activities30%
FX Trading Game 5%
Class Participation 10%
Extra Credit Problem Sets 3%

-ASSESSMENT CRITERIA:
AWork of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensive knowledge of relevant information or content. This type of work demonstrates the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course. 90-92.9: A-; 93-100: A
BThis is highly competent level of performance and directly addresses the question or problem raised.There is a demonstration of some ability to critically evaluatetheory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture andreference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments. 80-82.9: B-; 83-86.9: B; 87-89.9: B+
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings. 70-72.9: B-; 73-76.9: B; 77-79.9: B+
DThis level of performances demonstrates that the student lacks a coherent grasp of the material.Important information is omitted and irrelevant points included.In effect, the student has barely done enough to persuade the instructor that s/he should not fail. 60-66.9:D; 67-69.9: D+
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant. Below 60

-ATTENDANCE REQUIREMENTS:
ATTENDANCE REQUIREMENTS AND EXAMINATION POLICY
Please check the examination dates carefully. You cannot make-up a major exam (midterm or final) without the permission of the Dean’s Office. The Dean’s Office will grant such permission only when the absence was caused by a serious impediment, such as a documented illness, hospitalization or death in the immediate family (in which you must attend the funeral) or other situations of similar gravity. If granted permission, a single, comprehensive make-up exam will be given at the end of the semester.  Absences due to other meaningful conflicts, such as job interviews, family celebrations, travel difficulties, student misunderstandings or personal convenience, will not be excused. Students who will be absent from a major exam must notify the Dean’s Office prior to that exam. Absences from class due to the observance of a religious holiday will normally be excused. Individual students who will have to miss class to observe a religious holiday should notify the instructor by the end of the Add/Drop period to make prior arrangements for making up any work that will be missed. The final exam period runs until December 14.

Students must bring (and use) a calculator to class. During class no electronic devices are allowed unless there is a specific project we are working on which will be indicated by the instructor.   Cell phones and other electronic devices may not be used during an exam.  No eating in class.
ACADEMIC HONESTY
As stated in the university catalog, any student who commits an act of academic dishonesty will receive a failing grade on the work in which the dishonesty occurred. In addition, acts of academic dishonesty, irrespective of the weight of the assignment, may result in the student receiving a failing grade in the course. Instances of academic dishonesty will be reported to the Dean of Academic Affairs. A student who is reported twice for academic dishonesty is subject to summary dismissal from the University. In such a case, the Academic Council will then make a recommendation to the President, who will make the final decision.
STUDENTS WITH LEARNING OR OTHER DISABILITIES
John Cabot University does not discriminate on the basis of disability or handicap. Students with approved accommodations must inform their professors at the beginning of the term. Please see the website for the complete policy.

SCHEDULE

Tentative Class Schedule

Topics Assignment

Introduction

An Overview of International Financial Management Ch. 1 (skip p. 4-12): Q1.9-11
(9/4,6) Ch. 4 (p.93-99; 102-110):
Q4.4,5,11,12 

A.  International Monetary Environment

Foreign Exchange Market         Ch.5: Q5.1,2,4,12,13; P5.1,4,
(9/11,13,18) 5,10,12
Also Ch. 6 (p. 164-169):
P6.7,12

Futures & Options Ch. 7 (p.186-197):
(9/20,21) Q7.1,2,5-7; P7.2,3,8,9

International Monetary System Ch. 2 (skim p. 42-50):
(9/25,27) Q2.1,3,5,10,11; P2.3 


Exam I on Tuesday, October 2


B.  Exchange Risk Management

Parity Conditions and Forecasting Ch. 6: Q6.1-7,10,12-14,17; 
(10/4,9) P6.3,5,6
Ch. 9 (p. 257-261)

Transaction Exposure Ch. 10: Q10.1,3,4,9,10,13;
(10/11,16) P10.2,7,10,13,15

Translation Exposure Ch.11: Q11.1,4,5,7,9,10,17,18
(10/18,23) P11.8,9

Operating Exposure Ch. 12 (skip p. 326-330): 
(10/25) Q12.1,8,11,12,14


C.  Global Financing

Global Equity & Debt Markets Ch. 1 (p. 4-11) & Ch.14 (skip p.379-381 & 393-398):
(10/30,11/6,8) Q14.8,9,13-15,20


Exam II on Friday, November 9

D. Financial Decisions of MNCs

Multinational Cost of Capital Ch.13: Q13.2-4,6,18; P13.7
(11/13,15) Ch. 14 (p. 379-381; 393-398):
Q14.2,3,22; P14.3,8


Swaps,etc. Ch. 8 (p.222-231) + Note:
(11/20,27) Q8.12,16,17,20; P8.13

Multinational Financial System Ch.15: Q15.4,9,10,12,15
(11/29)

E.  Choice of International Business Activities

Trade Financing Ch.16: Q16.1-7
(12/4)

Foreign Direct Investment Ch.17: Q17.6,9-12
(12/4)

Multinational Capital Budgeting Ch.18 (p.489-492; 501-506):
(12/6) Q18.1,2,11; P18.1,3



Final Exam: Monday, December 10, 9:00 - 10:30 a.m.