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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 330-2"
COURSE NAME: "International Finance "
SEMESTER & YEAR: Spring 2019
SYLLABUS

INSTRUCTOR: Crina Pungulescu
EMAIL: [email protected]
HOURS: TTH 1:30-2:45 PM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS:
PREREQUISITES: Prerequisite: FIN 301
OFFICE HOURS: by appointment

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  syllabus is a draft. The final syllabus will be distributed the first day of class.

The topics covered are:

Introduction to Foreign Exchange Markets and Risks
        The Foreign Exchange Market
        Forward Markets and Transaction Exchange Risk
        The Balance of Payments
        Exchange Rate Systems
International Parity Conditions and Exchange Rate Determinants
        Interest Rate Parity
        Speculation and Risk in the Foreign Exchange Market
        Purchasing Power Parity and Real Exchange Risk
        Measuring and Managing Real Exchange Risk
        Exchange Rate Determination and Forecasting
Foreign Currency Derivatives
        Foreign Currency Futures and Options
        Interest Rate and Foreign Currency Swaps
LEARNING OUTCOMES:

Upon successful completion of the course a student will be able to:

·      Understand why firms and nations seek out and benefit from international business activities.

·      Understand the links between countries and the causes of the international flow of funds.

·      Analyse the basic factors that affect currency values and the nature of central bank intervention in foreign exchange markets.

·      Identify the key equilibrium relationships among inflation rates, interest rates and exchange rates.

·      Analyse the main techniques and the main foreign exchange and derivative markets used by multinational corporations to measure and manage their currency risks.

TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberComments
International Financial ManagementG. Bekaert and R. HodrickCambridge University Press9781107111820  
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Quizzes and Homework 20
Exam 1 20
Exam 2 20
Final Exam 40

-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. The student demonstrates complete, accurate, and critical knowledge of all the topics, and is able to solve problems autonomously.
BThis is highly competent level of performance and directly addresses the question or problem raised. There is a demonstration of some ability to critically evaluate theory and concepts and relate them to practice. The work does not suffer from any major errors or omissions and provides evidence that the student uses clear logic in his/her arguments.
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures. Mathematical statements are properly written most of the time.
DThis level of performances demonstrates that the student lacks a coherent grasp of the material. Important information is omitted and irrelevant points included. Many mistakes are made in solving the problem raised. In effect, the student has barely done enough to persuade the instructor that s/he should not fail.
FThis work fails to show any knowledge or understanding of the subject-matter. Most of the material in the answer is irrelevant.

-ATTENDANCE REQUIREMENTS:

Students are required to attend classes following the University’s policies.

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

SessionSession FocusReading AssignmentOther AssignmentMeeting Place/Exam Dates
Week 1 to 5Introduction to Foreign Exchange Markets and Risks (Chapters 2 to 5)   
Week 6 to 9International Parity Conditions and Exchange Rate Determinants (Chapters 6 to 10)  Exam 1 (Week 9 Session 2)
Week 10 to 13Foreign Currency Derivatives (Chapters 21 and 22)  Exam 2 (Week 12 Session 2)
Week 14Review for Final Exam   Final Exam (Comprehensive): see University schedule for date and time