NYU Stern School of Business

Undergraduate College

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

Spring 2012

Instructor Details

Singal, Vijay

vsingal@stern.nyu.edu

212-998-0339

MW 12:30 –1:30 p.m. and by appointment

KMC 9-151

 

Course Meetings

MW, 2:00pm to 3:15pm

KMC 5-75


 

Mid Term 1: February 29, 2012

Mid Term 2: April 11, 2012

Final Exam: As scheduled

Schedule exceptions
    Class will not meet on: Feb 1, 2012.  The make up class is on February 14th at 6 p.m.
  

 

Course Description and Learning Goals

Globalization and integration of financial markets present unique opportunities and unique risks for all kinds of firms and investors.  This course is designed to provide you with a strong conceptual background to allow better management decisions relating to international operations and international investing.  The course begins with a discussion of the world economic environment including trade, capital flows, and conditions that will promote economic growth.  The first part of the course is focused on currencies including an in-depth analysis of exchange rates, international monetary systems, contemporary currency regimes, and current financial crises.  After an understanding of currencies, the course discusses a firm's exposure to various kinds of exchange risks and the methods and financial instruments used to manage those risks, and investment in foreign financial assets.

 

Course Outline

 

Date

 

Subject

Chapter sections

Due dates

1/23/2012

M

Syllabus & Introduction

1.2, 1.3, 1.5

 

1/25/2012

W

The Foreign Exchange Market

2.1-2.3, 2.5

 

1/29/2012

M

Exchange Rate Systems

4.1-4.4 (Read only), 5.1-5.3

 

2/1/2012

W

No class.  Make up on 2/14/12

Reading day

 

2/6/2012

M

Exchange Rate Systems

5.4-5.6

 

2/8/2012

W

Exchange Rate Systems

   

2/13/2012

M

Forward Markets

3.1-3.5

Chap 5 HW

2/14/2012

T

Make up class at 6 p.m.

   

2/15/2012

W

No class. President’s Day

   

2/20/2012

M

Interest Rate Parity

6.1-6.4

Chap 2,3 HW

2/22/2012

W

Interest Rate Parity

   

2/27/2012

M

Foreign Currency Speculation

7.1-7.6

Chap 6 HW

2/29/2012

W

Midterm Exam 1

   

3/5/2012

M

Foreign Currency Speculation

   

3/7/2012

W

Purchasing Power Parity

8.1-8.9

Chap 7 HW

3/12-14/2012

 

Spring Break

   

3/19/2012

M

Purchasing Power Parity

   

3/21/2012

W

Exchange Rate Determination

10.1-10.3

Chap 8 HW

3/26/2012

M

Managing Real Exchange Risk

9.1-9.2, 9.4-9.6

 

3/28/2012

W

Managing Real Exchange Risk

   

4/2/2012

M

International Debt Financing

11.1-11.5

Chap 9 HW

4/4/2012

W

International Equity Financing

12.1-12.3

 

4/9/2012

M

International Investments

13.1-13.3, 13.6

 

4/11/2012

W

Midterm Exam 2

   

4/16/2012

M

International Investments

 

Paper: Draft

4/18/2012

W

International Capital Budgeting

15.1, 15.2

Chap 13 HW

4/23/2012

M

Currency Futures and Options

20.1, 20.3

 

4/25/2012

W

Currency Risk Management

17.1-17.3

Chap 20 HW

4/30/2012

M

Currency Risk Management

20.2, 20.4

Chap 17 HW

5/2/2012

W

Interest Rate and Currency Swaps

21

Paper: Final

5/7/2012

M

Interest Rate and Currency Swaps

 

Chap 21 HW

5/9/2012

W

Final Exam (3:30-4:45 section)

4:00-5:50 p.m.

 

5/14/2012

M

Final Exam (2:00-3:15 section)

2:00-3:50 p.m.

 

 

Required Course Materials

Bekaert and Hodrick: International Financial Management, Pearson Prentice Hall, Second Edition, 2012 (Strongly recommended).  Course material will be drawn both from the textbook and class handouts.  The textbook is intended to help in providing you a much broader perspective of international finance and will fill in many details even for topics I cover from class handouts.  

You must read the Wall Street Journal, the Financial Times, or the Economist on a regular basis to assist you in understanding class material.  Real life examples from these publications are an effective way of learning the material.

 

Assessment Components

The grade will be determined as follows: 

            First Exam                   20% (February 29)

            Second Exam              20% (April 11)

            Final Exam                  35%

            Homework                  10%

            Term Paper                15% (Draft: April 16; Final: May 2)

 

Grading

Scores on the exams, homework, and the term paper 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.  However, there are guaranteed grades: students with 90 or more will get an A- or higher; students with 80 or more will get a B- or higher; students with 70 or more will get a C- or higher; and students with 60 or more will get a D- or higher.  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

In line with Grading Guidelines for the NYU Stern Undergraduate College, the process of assigning of grades is intended be one of unbiased evaluation. This means that students are encouraged to respect the integrity and authority of the professor’s grading system and discouraged from pursuing arbitrary challenges to it.

If a student feels that an inadvertent error has been made in the grading of an individual assignment or in assessing an overall course grade, a request to have that the grade be re-evaluated may be submitted. Students should submit such requests in writing to the professor within 7 days of receiving the grade, including a brief written statement of why he or she believes that an error in grading has been made.

 

Professional Responsibilities For This Course

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:

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.

 

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.

 

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