In case of limited activities on campus, the course will take place in distance mode. It will consist of a mix of synchronous online classes and asynchronous materials. On-line office hours will also be scheduled to support students during this phase.

Attendance is still required. Students have to attend at least 75% of the synchronous online classes.

With respect to the final exam, it will take place on campus for all students. Foreign students subject to travel restrictions are allowed to take the final exam online.

The evaluation is based on:

1. Assignments 40 points

2. Quizzes 20 points

3. Final Exam 40 points

Total 100 points

Grading (p=points)

p ≥  87,5                       1

75,0 ≤  p < 87,5            2

62,5 ≤  p < 75,0           3

50,0 ≤  p < 62,5           4

p <  50,0                      5

The aim of this course is to introduce students into international financial management. Firms acquiring and investing funds not only in the domestic market but also beyond borders encounter a broader set of opportunities but also face additional risks. The course focuses on the main tools that international finance managers use to analyze investment across countries or to make the best business decisions.

The main topics covered in this course are:

1. Spot Markets for Foreign Currency

2. Forward Markets for Foreign Currency

3. Currency Options

4. Relevance of Hedging Foreign Exchange Risk

5. Measuring Exposure to Exchange Rates

6. Cost of International Capital

7. International Capital Budgeting

On successful completion of this course, students will have acquired an understanding about:
i) characteristics and mechanisms of currency markets and the most important financial instruments operating in these markets,
ii) how these instruments can be used to measure and manage foreign exchange risk,
iii) how to set the cost of capital and adjust domestic capital budgeting for international projects.

Students have to attend at least 75% of the classes.

The course consists of mandatory regular lectures and assignments. The lectures will be largely based on the instructor's lecture notes, on the main textbook and additional readings.

The evaluation is based on:

1. Assignments 40 points

2. Quizzes 20 points

3. Final Exam 40 points

Total 100 points

Grading (p=points)

p ≥  87,5                       1

75,0 ≤  p < 87,5            2

62,5 ≤  p < 75,0           3

50,0 ≤  p < 62,5           4

p <  50,0                      5

giorgia.simion@wu.ac.at