FINANCE 4144
INTERNATIONAL FINANCIAL MANAGEMENT
SPRING 2007
Professor:
Office:
Office Hours:
Office Phone:
E-mail:
Dr. D. M. Patterson
Pamplin 1021
3:30 – 4:00 Mon, 2:00 –3:00 Thursday, or by appointment
231-5737
docfin@vt.edu
COURSE DESCRIPTION
We will explore the international economic environment, including analyses of exchange
rates, international monetary systems, contemporary currency regimes, and current or
recent financial crises. We will examine firms’ exposure to various types of exchange
risk and those methods and financial instruments used to manage that risk.
PREREQUISITE
Finance 3104 and Upper Division Clearance. If you do not have Upper Division
Clearance, you may be dropped from the class roster.
TEXTS
Required:
Eun and Resnick, International Financial Management, 4th edition, McGraw-Hill Irwin,
New York, NY, 2007.
Strongly Recommended:
Wall Street Journal (a journal print edition includes the online edition).
COURSE WEB PAGE
A page for this course is located at:
http://www.pamplin.vt.edu/finance/Faculty/dmp/teaching/fin4144/index.htm
Please bookmark this page on your browser. You will need Adobe Acrobat Reader in
order to download some of the information (it’s available free at various www locations
including www.adobe.com). Among other things, the web page contains the course
outline, textbook problem assignments, finance related Web sites, course handouts, and
other neat stuff.
TEXTBOOK ASSIGNMENTS
Problems and questions assignments from the end of textbook chapters are located on the
web page. The solutions to some of these problems will be reviewed during the class
period. These questions and problems will not be collected for grading.
GRADED ASSIGNMENTS
There will be three short written assignments, plus a written mini case. You can pick
from a set of three mini cases the one you would like to submit. Detailed instructions as
to how your case should be prepared and how it will be graded will be provided later.
WITHDRAWING FROM CLASS AND REGISTRATION
You must withdraw by the deadline. Only registered students are allowed to take this
class.
SCHOLASTIC CODE
The Virginia Tech Honor System is in force for this course. Any and all violations will be
turned in to the Virginia Tech Honor System for review and discipline. Check you Hokie
Handbook for a complete description of the honor policy.
OTHER INFORMATION
Class Participation: Student participation in class is strongly encouraged. Factors such
as attendance, questions asked, questions answered, and contributions to class discussion
may be considered in assigning final grades. In particular, if you are on the borderline
between two grades, class participation can boost you to the higher grade.
Student Conduct: As a responsible member of the Virginia Tech community, you will
be awake, alert, and participate in a positive and professional manner. Failure to follow
this basis standard could result in reduction of your class grade.
Required Reading: The textbook is reasonably well written and well organized. Read
your text ahead of time so that you will be familiar with the material we discuss in class.
This will also help you with your class notes in that if you know the material that is
discussed in your text, you can spend more time listening to the lecture. If you miss a
class, ask a classmate what was covered in class, and if I handed out extra reading
material or problems.
Exam Policies: Students missing the 1st hour exam for a University recognized excuse
will take the 2nd hour exam during the scheduled time. The score on the second exam will
then be weighted 50% in calculating your class average. If you miss the 2nd hour exam,
then the weight given the final will be adjusted up.
PERFORMANCE EVALUATION
Letter grades in this course will be determined primarily through objective evaluation of
your performance and will follow the Va. Tech standard +/- system as outlined in your
student handbook. A grade of incomplete will only be assigned if at least 85% of the
class has been completed and a grade average of “C” or better had been maintained.
GRADE DETERMINATION
There will be two hour exams and a comprehensive final exam in addition to the written
assignments. Each hour exam and the final will be preceded by an open book practice test
that will be given on Blackboard. These practice tests will not count towards your grade.
COMPONENT
Written Assignments
1st Hour Exam
2nd Hour Exam
Final Exam
WEIGHT
20%
25
25
30
100%
Letter grades FIN 4124 will be determined by the relative ranking of your course average
score. The course average will be calculated using the weights shown above. The
proportion of the class receiving a particular letter grade will be determined by the
following curve.
Grade Curve
A
10-20%
B
20-30%
C
25-40%
D
5-15%
F
0-7%
COURSE OUTLINE
Fin 4144
WEEK
TOPIC
READING
January 15
Introduction
Chapter 5
January 22
Foreign Exchange Basics
Chapter 5
January 29
Foreign Exchange Basics
Chapter 5 and
appendix
February 5
Parity Relationships
Chapter 6 and
appendix
February 12
Parity Relationships
Chapter 6 and
appendix
February 19
Futures and Options Contacts
Chapter 7
February 26
Futures and Options Contacts
Chapter 7
First Exam: Thursday, March 1
March 5
Spring Break
March 12
Futures and Options Contacts
Chapter 8
March 19
Foreign Currency Risk Exposure
Chapter 8
March 26
Foreign Currency Risk Exposure
Chapter 8
April 2
International Monetary System
Chapter 1 &
appendix
Second Exam: Thursday, April 5
April 9
Mini Cases
Handouts
April 16
International Monetary System
Chapter 2
April 23
International Monetary System
Chapter 2
April 30
International Monetary System
May 7
EXAM PERIOD
Check Virginia Tech web site for
day and time of final exam
www.vt.edu/academics
Click on “Exam Schedules”
Chapter 2