International finance
Mr Adam Steen
6 points * Two 1-hour lectures and one 1-hour tutorial per week * Second semester * Clayton * Prerequisite * AAF2140 or AAF2170.
Objectives On completion of this subject students should be familiar with the major issues in foreign currency transactions and risks; able to understand and apply the central theorems of international finance theory; able to define and evaluate hedging techniques and instruments; familiar with international equity raising; able to evaluate international portfolio construction; able to analyse issues in international capital budgeting.
Synopsis The subject provides a systematic analysis of a range of issues in international finance and global financial markets. Topics include the international financial system, institutions and market practices; international finance theorems and their application; Euromarkets; international debt and equity raising; measurement of foreign exchange risk; managing foreign exchange exposure; foreign currency futures, options and swaps, international portfolio investment and capital budgeting and international trade finance.
Assessment Written (1000 words): 10% * Mid-semester test (50 mins): 20% * Examination (3 hours): 70%
Prescribed texts
Juttner D J International finance and global financial markets 2nd edn, Longman Cheshire, 1992