Global Accounting and Finance
BADM 552
CRN: 70313 Room #: B&E 441 Time: M_F 10.30-11.20
Instructor:
Ashok B. Abbott
Office:
217 B&E
Phone:
293-7886
E-mail:
aabbott@wvu.edu
Office Hours:
1.00-2:30 M-TH or by appointment
Course Objectives: Financial Management education provides a very broad based
training in the science of optimal decision-making. Each decision is analyzed in terms
of costs involved and benefits expected. International finance involves the simultaneous
tracking of transactions in a variety of currencies and economies, creating an extended
set of opportunities and decisions. Extension of standard corporate finance concepts to
the global arena will help to understand the additional complications faced by a global
firm.
Expected Learning Outcomes: Upon successful completion of this course:
1. Students will understand currency conversion mechanisms
2. Students will develop an understanding of currency markets in spot, option,
and futures
3. Students will be able to identify currency arbitrage opportunities in real time.
4. Students will be able to make informed investment decisions in a global
financial context.
Course Text:
Multinational Business Finance Eiteman, Stonehill, Moffett 10th edition
Recommended Readings: Wall Street Journal, Economic Times, and Yahoo Finance
Grading Procedure
Course Grades will be an average of the following:
Currency Trading Analysis:
Mid Term I:
Final:
40%
30%
30%
Grade Assignment: 100 – 90 A
89 – 80 B
79 – 70 C
69 – 60 D
59 – 0 F
No make-up exams except by prior arrangement with instructor
No Late assignments.
Exam grading appeals in writing on the day the exam is returned.
Attendance Policy: Consistent with WVU guidelines, students absent from regularly
scheduled examinations because of authorized University activities
will have the opportunity to take them at an alternate time
Social Justice Statement: “West Virginia University is committed to social justice. I
concur with that commitment and expect to maintain a positive learning environment
based upon open communication, mutual respect, and nondiscrimination. Our University
does not discriminate on the basis of race, sex, age, disability, veteran status, religion,
sexual orientation, color or national origin. Any suggestions as to how to further such a
positive and open environment in this class will be appreciated and given serious
consideration. If you are a person with a disability and anticipate needing any type of
accommodation in order to participate in this class. Please advise me and make
appropriate arrangement with Disability Services (293-6700).”
Course Schedule:
07/01/04
Currency Trading project introduction
Chapter 1
Introduction to Global Financial Management
07/02/04
Chapter 2 International Monetary System
07/05/04
Chapter 3
Balance of Payments
Economic data and currency exchange rate determination
07/07/04
Chapter 4
Foreign Exchange Markets
07/12/04
Chapter 5
Currency Derivatives
Options Pricing (Ch. 24)
07/19/04
Mid Term I
Trading Round I concludes
Report I due
07/20/04
Chapter 6
Parity Conditions
07/22/04
Chapter 7
Exchange Rate Determination
Trading Round II Starts
07/26/04
Chapter 8
Transaction Exposure
07/28/04
Ch. 9
Operating Exposure
07/30/04
Ch. 10
Accounting Exposure
08/03/04
Financing the Firm
Ch. 11,12,13
08/09/04
Review
08/10/04
Final
Currency Project Report Due