NYU Stern School of Business

Undergraduate College

FINC-UB.0030.001 (C15.0030): INT'L FINANCIAL MGMT

Spring 2013

Instructor Details

Bonini, Stefano

sbonini@stern.nyu.edu

998-0309

TBD

KMC 10-91

 

Course Meetings

MW, 2:00pm to 3:15pm

KMC 5-75


Final Exam:As scheduled by NYU in Exam Week

Schedule exceptions
    Class will not meet on:
    Class will meet on:

 

Course Description and Learning Goals

The course aims at providing students with a comprehensive view of how international corporate financial markets work and how MultiNational Enterprises (MNEs) raise capital, hedge risks and shape their investment decisions in a global setting.

Main topics are:

 

Course Pre-Requisites

FINC-UB 7 (Corporate Finance) and ECON-UB 2 (Economics of Global Business).  As this course is a natural and logical extension of the principles learned in other finance/economics courses to an international context, you are expected to know the basic finance/economics principles well.

 

Course Outline

Week/ session number

Topic

Readings

Topic

Readings

I/1-2

Course presentation, topics overview, FX Game

ER 1

International trade, global financial markets and institutions

ER 1-11

II/3-4

International Monetary  System

ER 2

Balance of Payments

ER 3

III/5-6

Foreign exchange markets: participants, spot and forward markets

ER 5

Parity conditions and the PPP theory: evidence and deviations

ER 6

IV/7-8

International Parity Conditions (1)

ER 6

International Parity Conditions (1)

ER6

V/9-10

International Parity Conditions (3)

ER6

Spot rate forecasting

ER 6

VI/11-12

Test #1

-

Currency futures

ER 7

VII/13-14

Interest rate swaps

ER 14

Currency Swaps

ER 14

VIII/15-16

Currency Options: option fundamentals

ER 7

Currency and interest option pricing (1)

ER 7

IX/17-18

Currency and interest option pricing (2)

ER 14

Alternative hedging techniques

ER8

X/19-20

Test #2

-

Raising capital in international markets

ER 11-12

XI/21-22

International Equity markets

ER 13

International Bond markets

ER 12

XII/23-24

Calculating cost of capital for MNEs and international investments

ER 17

Calculating cost of capital for MNEs and international investments

Handout

XIII/25-26

Cross-border M&A

ER 16

Guest speaker

 

XIV/27-28

Managing exposure to financial risks: translation exposure

ER 10

International Taxation

ER 21

Test #3

 

Required Course Materials

Eun, Resnick, International Financial Management, Sixth Edition, McGraw-Hill

 

Book resources include online exercise and self-assessment tools. Some topics will require additional materials such as research papers, journal articles and financial press reports that will be distributed through the course blackboard. Slides and teaching material will be posted on the course blackboard.

 

Assessment Components

Students will be required to complete three in-class exams contributing 25% each to the final grade. Each exam will be a 15 multiple choice questions test. One take-home group assignment will be required and graded contributing 15% to the final grade. Group-assignment will be communicated two weeks before the end of classes and the turn-in deadline will be the last day of classes. Additionally students will be required to participate in the FX trading game that will contribute 10% to the final grade. Game participation is mandatory.

 

Group Projects

Guidelines for Group Projects

Business activities involve group effort. Consequently, learning how to work effectively in a group is a critical part of your business education.

Every member is expected to carry an equal share of the group’s workload. As such, it is in your interest to be involved in all aspects of the project. Even if you divide the work rather than work on each piece together, you are still responsible for each part. The group project will be graded as a whole:   its different components will not be graded separately. Your exams may contain questions that are based on aspects of your group projects.

It is recommended that each group establish ground rules early in the process to facilitate your joint work including a problem-solving process for handling conflicts. In the infrequent case where you believe that a group member is not carrying out his or her fair share of work, you are urged not to permit problems to develop to a point where they become serious. If you cannot resolve conflicts internally after your best efforts, they should be brought to my attention and I will work with you to find a resolution.

You will be asked to complete a peer evaluation form to evaluate the contribution of each of your group members (including your own contribution) at the conclusion of each project. If there is consensus that a group member did not contribute a fair share of work to the project, I will consider this feedback during grading.

 

Grading

Scores on the exams, group assignment and trading game will be added to determine course totals.  The course grades will be assigned on a curve, based on the course totals, with a B median.  In general, students in this course can expect a grading distribution similar to that used in our core courses, where:

·           25-35% of students can expect to receive A’s for excellent work

·           50-70% of students can expect to receive B’s for good or very good work

·           5-15% of students can expect to receive C’s or less for adequate or poor work

Note that while I will use the above as a guide, the actual distribution for this course and your own grade will depend upon how well each of you actually performs in this course.

 

Re-Grading

The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor’s grading system and are discouraged from pursuing arbitrary challenges to it.

If you believe an inadvertent error has been made in the grading of an individual assignment or in assessing an overall course grade, a request to have the grade re-evaluated may be submitted. You must submit such requests in writing to me within 7 days of receiving the grade, including a brief written statement of why you believe that an error in grading has been made.

 

Professional Responsibilities For This Course

Attendance

 

Participation

In-class contribution is a significant part of your grade and an important part of our shared learning experience. Your active participation helps me to evaluate your overall performance.
You can excel in this area if you come to class on time and contribute to the course by:

 

Assignments

 

Classroom Norms

 

Stern Policies

General Behavior
The School expects that students will conduct themselves with respect and professionalism toward faculty, students, and others present in class and will follow the rules laid down by the instructor for classroom behavior.  Students who fail to do so may be asked to leave the classroom. 

 

Collaboration on Graded Assignments
Students may not work together on graded assignment unless the instructor gives express permission. 

 

Course Evaluations
Course evaluations are important to us and to students who come after you.  Please complete them thoughtfully.

 

Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.

 

Recording of Classes

Your class may be recorded for educational purposes

 

Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.

 

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