FIN 503
International Finance
Spring 2002    Prof. Jim Mallett

OFFICE:                     204 Bank of America Building                       

PHONE:                     904/822-4061 - Office
                                   904/822-7491 - Fax 

E-MAIL & WWW:      jmallett@stetson.edu
                                    www.stetson.edu/~jmallett
                                    www.improveyourfinances.com

OFFICE HOURS:     Monday:  5:00-6:00
                                 Tuesday:  10:00-11:00
                                 Wednesday: 11:00-12:00
                                 Thursday: 2:30-4:00
                                  Also available by appointment

TEXT:                         International Financial Management, Madura, Sixth Edition 

RECOMMENDED
READING:                 The Wall Street Journal

OUTLINE AND READING ASSIGNMENTS 

I.          The International Finance Environment 

            A.        Multinational Financial Management: An Overview - Chapter 1
            B.        International Flow of Funds - Chapter 2
            C.        International Financial Markets - Chapter 3 & Appendix 3
            D.        Government Influence on Exchange Rates - Chapter 6
            E.        Currency Futures and Options - Chapter 5 

II.        EXCHANGE RATE BEHAVIOUR 

            A.        Exchange Rate Determination - Chapter 4
            B.        International Arbitrage and Interest Rate Parity - Chapter 7
            C.        Relationships between Inflation, Interest Rates, and Exchange Rates Chapter 8 

III.       EXCHANGE RATE RISK MANAGEMENT 

            A.        Forecasting Exchange Rates - Chapter 9
            B.        Measuring Exposure to Exchange Rate Fluctuations - Chapter 10
            C.        Managing Transaction Exposure - Chapter 11
            D.        Managing Economic Exposure and Translation Exposure - Chapter 12

GRADING:     Cases                                                                  10%
                        Project                                                                20%
                        First Exam - Feb. 20                                           20%
                        Second Exam - April 3                                       20%
                        Final Exam (Comprehensive) - May 8                30%

Make-up exams will be given only to students with a valid excuse and who notify me before an exam is given.  Assignments are due at the beginning of the period.  Late work will lose credit.

COURSE PREREQUISITES:
Principles of Macroeconomics (ES 101) and Microeconomics (ES 102), Undergraduate Finance (FIN 311)

ATTENDANCE:       
Attendance will be taken and good attendance is highly recommended.  In marginal cases, excellent attendance will help your grade.

GOAL:
To gain an understanding of the international environment in which multinational firms operate.  Specifically, the student should learn the basics of exchange rate determination, the structure of international financial markets, and managing exchange rate exposure. 

Material on this syllabus, such as the following learning objectives, is subject to change during the course.  You are responsible for attending class to receive these changes.