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