units

BFC3240

Faculty of Business and Economics

18 September 2017 22 December 2024

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This unit entry is for students who completed this unit in 2016 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

Monash University

6 points, SCA Band 2, 0.125 EFTSL

Undergraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.

Faculty

Business and Economics

Organisational Unit

Department of Banking and Finance

Offered

Clayton

  • First semester 2016 (Day)
  • Second semester 2016 (Day)

Synopsis

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.

Outcomes

The learning goals associated with this unit are:

  1. analyse and evaluate the benefits and disadvantages of the various exchange rate systems
  2. critically appraise the extent to which the theories of exchange rate determination explain exchange rate movements in today's globalised economy
  3. explain the various tools and approaches for firms in hedging transaction exchange exposure, and recommend the most appropriate approach to hedging in a variety of economic and firm-specific circumstances
  4. analyse the extent to which firms are exposed to economic or operating exchange risk, evaluate their systems in place to manage it, and recommend alternative approaches
  5. appraise the benefits of international portfolio investment vis-a-vis domestic-only diversification
  6. apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with international finance and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFC3240.

Assessment

Within semester assessment: 40%
Examination: 60%

Workload requirements

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

See also Unit timetable information

Chief examiner(s)

Associate Professor Elaine Hutson

Prerequisites

AFC2140 or BFC2140

Prohibitions

AFW2341, BFW2341, BFF2341,AFC3240