International Finance

Subject FNCE90025 (2016)

Note: This is an archived Handbook entry from 2016.

Credit Points: 6.25
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject is not offered in 2016.
Time Commitment: Contact Hours: One 3-hour lecture per week for 6 weeks
Total Time Commitment:

Estimated total time commitment of 60 hours per semester
Prerequisites:

FNCE90019 Principles of Finance, FNCE90020 Derivative Securities. This subject is only available to those students who would satisfy the entry criteria for the Master of Applied Finance.

Subject
Study Period Commencement:
Credit Points:
Not offered in 2016
12.50
Not offered in 2016
12.50
Corequisites:

None
Recommended Background Knowledge:

None
Non Allowed Subjects:

None
Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Contact

TBC

Subject Overview:

Spot and forward foreign exchange, currency futures, options and swaps, rationales for foreign exchange hedging, the balance of payments, Purchasing Power Parity, risk and return, taxation and international capital budgeting.
Learning Outcomes:

On successful completion of this subject students should be able to:

  • Design links that must hold, in the absence of arbitrage, between domestic and foreign interest rates, forward exchange rates and spot exchange rates;
  • Analyse the factors that are important in determining the extent to which a firm will hedge against changes in foreign exchange rates;
  • Recognise factors that are important in determining exchange rates;
  • Apply pricing principles to determine how forward exchange rates must be related to expectations of future spot exchange rates;
  • Discuss how taxes can affect international investment decisions;
  • Explain how to evaluate foreign projects.
Assessment:
  • One 2-hour examination (80%)
  • Assignments totalling not more than 1000 words (20%)
Prescribed Texts:

You will be advised of prescribed texts by your lecturer.
Breadth Options:

This subject is not available as a breadth subject.
Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

On successful completion of this subject, students should have improved the following generic skills:

  • Oral Communication
  • Written Communication
  • Collaborative Learning
  • Problem Solving
  • Team Work
  • Statistical Reasoning
  • Application of theory to practice
  • Interpretation & Analysis
  • Critical Thinking
  • Synthesis of data and other information
  • Evaluation of data and other information
  • Using Computer Software
  • Accessing data and other information from a range of sources

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