AFC3240

International finance

Mr Adam Steen

6 points
* Two 1-hour lectures and one 1-hour tutorial per week
* Second semester
* Clayton
* Prerequisite: AFC2140 or AFC2170

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

Madura J International financial management 4th edn, West, 1995