Course Description

The course focuses on understanding the theory of international finance and on its real world applications from a business point of view. Understanding the foreign exchange markets is necessary to carry out a sound and effective management of the firm from a financial point of view. And since multinational corporations face opportunities but also risks, international financial management involves the design of appropriate strategies to hedge the company from actual and potential foreign exchange risks through the use of different types of hedging techniques (such as out straight Forward, Currency Swaps, Options on Currency) available for this purpose.

Course Learning Outcomes

General competences

  • Ability to relate concepts and knowledge from different areas
  • Ability to tackle and solve problems
  • Ability to take decisions in complex and changing environments
  • Ability to use quantitative criteria and qualitative insights when taking decisions
  • Ability to search and exploit new information sources
  • Oral and written competence in communicating in English

Specific competences

  • Facilitate understanding of the determinants and consequences of international financial transactions.
  • Introduce basic financial concepts and analytical techniques and introduce their application to international transactions.
  • Ability to understand the decisions taken by economic agents and their interaction in Financial markets.
  • Ability to analyze Financial market indicators when taking decisions within the organization
  • Assess and discuss the cash flow hedges and financial position of an organization.
  • Ability to express and understand spoken and written communication in English at an advanced level in the international business environment.

Course Materials

  • class course: PPT presentation
  • Online class through TEAMS
  • Online materials on TEAMS

Course Content

  • FOREX Market: Stakeholders, Functions and Operations
  • Spot Forex Market: Currency Exchange Double Quotation and Cross Rate Calculations
  • Spot Forex Market: Arbitrage on spot market
  • Forward Forex Market: Forward Exchange Quotations
  • Forward Forex Market: Theory of Interest Parity
  • Forward Forex Market: Interest Rate Quotations
  • Forward Forex Market: Forward Out-Straight
  • Forward Forex Market: Arbitrage on Forward Contracts
  • Forward Forex Market: Currency Swaps
  • Financing and FOREX Hedging Techniques
  • Financing and FOREX Hedging Techniques
  • Options on Currency: Option pricing
  • Options on Currency: Basic Strategies of hedging

TBS Grading Scale

Scale (out of 100)TBS Grading ScaleGrade Point
Grade > 90A4.0
87≤ Grade < 90A-3.7
83 ≤ Grade < 87B+3.3
80 ≤ Grade < 83B3.0
77 ≤ Grade < 80B-2.7
73≤ Grade < 77C+2.3
70 ≤ Grade < 73C2.0
67 ≤ Grade < 70C-1.7
65 ≤ Grade < 67D+1.3
60 ≤ Grade < 65D1.0
Grade < 60F0.0