AFC9240

International finance

Mr Adam Steen

One 3-hour session per week
* Second semester
* Clayton
* Prerequisite: AFC9020 or equivalent

Objectives On completion of this subject students should be familiar with the major issues in foreign currency transactions and associated risks; able to understand and apply the central theorems of international finance theory; able to define and evaluate techniques used to hedge foreign currency exposures; familiar with international equity raising; able to evaluate international portfolio construction; able to analyse issues in international capital budgeting.

Synopsis This subject surveys the major principles and practices of international finance. Topics include foreign exchange contracts and exchange rate quotation; linkages between the spot rate, the forward rate, interest rates and inflation rates; management of foreign exchange risk; international diversification of investments; foreign currency futures and options; international issues in capital budgeting; taxation and accounting aspects of international finance.

Assessment Written (2000 words): 20%
* Examination (3 hours): 80%

Prescribed texts

Shapiro A C Multinational financial management 5th edn, Allyn and Bacon, 1996