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International finance
Michele Fratianni

Seat Fac. Economia - Sede di Ancona
A.A. A.A. 2016-2017
Credits 6
Hours 44
Period 1^ semestre
Language ENG

Prerequisites

The course is targeted to students who have a background in economics, especially in the field of money, banking and finance, and intend ultimately to become certified as a “Chartered Financial Analyst”. Good understanding of and writing proficiency in English are highly recommended.

 

 

Development of the course

Lectures, class discussion, problem solving, case studies

Learning outcomes

Student is made aware that the topics under discussion are significant and worth investigating.
1.    At least one theoretical construct is required for an in-depth understanding of the phenomena at hand. In many instances, two contrasting hypotheses are presented and evaluated in terms of the data.
2.    Problems and applications reinforce the importance of relevant theory for a better understanding of the “real” world.
3.    Learning is an interacting process. Student comes to class having at his/her disposal the teaching material. Instructor emphasizes certain aspects of that material and solicits reactions from students, often with the use of examples. For problems and practical applications, students are asked to provide their solutions in front of the class. 

 

Program

·    The international monetary system
·     The foreign exchange market: size and instruments
·     The balance of payments and external debt 
·     Parity conditions, market efficiency and risk premia 
·     Exchange rate theories 
·    Hedging foreign exchange risk
o    The: forward contract
o    Futures
o    Swaps
o    Options
·     Speculative attacks and exchange rate crises 
·     Debt and financial crises
For more details, see the instructor’s text on International Finance.

 

 

Development of the examination

Given that the course has as its primary objective a dynamic and operational knowledge of the main topics of international finance, real-life applications, exercises and team work will be fully integrated with lectures and other formal presentations. Course performance will be based on two written exams and an individual class performance. 
1.    Exams: two written exams of 90 minutes each plus active class participation
2.    Assessment criteria: objective grading of the two exams plus my evaluation of student’s problem-solving ability.
3.    Grading scale 
Positive grades: from 18 to 30. Cum laude is given to outstanding performance (typically less than 1 percent of the class)
4.    Grading method: Each of the two written tests receive a maximum of 15 points, whereas active class participation receives a maximum of five points. Cum laude requires a total score higher than 30. 

 

 

Recommended reading

The unpublished text, International Finance, by the instructor (available for students enrolled in the class).

As an alternative, 
·    Richard Levich, International Financial Markets, 2nd edition, McGraw-Hill/Irwin, 2001: capp. 2, 3, 4, 5, 6, 7, 11, 12, 13.
·    CFA Institute, Program Curriculum, 2012, Level I: Vol 2: pagg. 467-564; e Vol 6: pagg. 43-44, 49-68. 

Courses

• L.M. - Scienze Economiche e Finanziarie n.o. - curriculum Banche e mercati
• L.M. - Scienze Economiche e Finanziarie n.o. - curriculum Analista finanziario