Kurso programos
RISK MANAGEMENT (SUSTAINABLE CORPORATE FINANCE & INVESTMENT MASTER PROGRAMME))
VILNIUS UNIVERSITY
BUSINESS SCHOOL
Risk management
THE COURSE IS DEDICATED TO STUDENTS OF SUSTAINABLE
CORPORATE FINANCE &
INVESTMENT MASTER PROGRAMME
PREPARED BY PROF. DR. ARVYDAS PAŠKEVIČIUS
Purpose of the course is develop theoretical and practical financial management skills to understand the nature and operation of the international financial system. Form practical skills, how to apply foreign exchange market’s instruments in the multinational business, how to measure foreign exchange exposure and to manage it so as to maximize the profitability, net cash flow, and market value of the firm.
Student will be able: to analyze the country's balance of payments and to assess the impact of changes in the domestic currency exchange rate and other macroeconomic indicators; to forecast exchange rate changes using theoretical knowledge and public information sources; to calculate cross-currency exchange rates based on market information; to use the derivative instruments, including forwards, futures, options, and swaps managing foreign exchange exposure; to measure transaction exposure and select the most favorable hedging policy.
VU Virtual Learning Enviroment
ORGANIZATION OF STUDIES
Dear students
We will use 3 programs when organizing studies
First, this page that contains all the information (lecture notes, literature, homework and exam questions).
Second, VU Virtual Learning Enviroment, e-learning, where you will find the exam task and link to this page.
Third, the MS Teams program. Use the link to join Risk Management Sustainable Corporate Financeand Investments
SYLLABUS
1. Multinational Financial Management: Opportunities and Challenges
1.1. Introduction to the Course
1.2. International Financial Management
1.3. The Theory of Comparative Advantage
2. The International Monetary System
2.1. History of the International Monetary System
2.2. Fixed Versus Flexible Exchange Rates
2.3. The Impossible Trinity
2.4 A Single Currency for Europe: The Euro
3. The Balance of Payments
3.1 Fundamentals of BOP Accounting
3.2 The Accounts of the Balance of Payments
4. The Foreign Exchange Market
4.1 Functions of the Foreign Exchange Market
4.2 Structure of the Foreign Exchange Market
4.3 Transactions in the Foreign Exchange Market
4.4 Foreign Exchange Rates and Quotations
5. International Parity Conditions
5.1 Prices and Exchange Rates
5.2 Interest Rates and Exchange Rates
5.3 Interest Rate Parity (IRP)
5.4 Forward Rate as an Unbiased Predictor of the Future Spot Rate
5.5 Prices, Interest Rates, and Exchange Rates in Equilibrium
Lecture Notes Porsche mini case
6. Foreign Exchange Rate Determination and Intervention
6.1 Exchange Rate Determination: The Theoretical Thread
6.2 Currency Market Intervention
6.3 Disequilibrium: Exchange Rates in Emerging Markets
6.4 Currency Forecasting in Practice
7. Foreign Currency Derivatives: Futures and Options
7.1 Foreign Currency Futures
7.2 Foreign Currency Options
7.3 Option Pricing and Valuation
7.4 Currency Option Pricing Sensitivity
Lecture Notes Barings Bank and Nick Leeson
8. Transaction Exposure
8.1 Types of Foreign Exchange Exposure
8.2 Why Hedge?
8.3 Transaction Exposure
8.4 Transaction Exposure Management
8.5 Transaction Exposure Management in Practice
SCHEDULE FOR THE WORK
|
Nr. |
W.D. |
Data |
Time |
Room |
Topic |
Notes |
|
1 |
Thu |
09 February 2023 |
18:00‑19:30 |
303 |
1. Multinational Financial Management: Opportunities and Challenges. |
|
|
2 |
Thu |
09 February 2023 |
19:40-21:10 |
303 |
2. The International Monetary System. 3. The Balance of Payments |
Print the homework assignment |
|
3 |
Fri |
10 February 2023 |
16:20‑17:50 |
303 |
4. The Foreign Exchange Market |
|
|
4 |
Fri |
10 February 2023 |
18:00-19:30 |
303 |
4. The Foreign Exchange Market. Overview of homework assignments. Case study. |
|
|
5 |
Sat |
11 February 2023 |
9:00-10:30 |
303 |
5. International Parity Conditions |
|
|
6 |
Sat |
11 February 2023 |
10:40-12:10 |
303 |
6. Foreign Exchange Rate Determination and Intervention |
|
|
7 |
Sat |
11 February 2023 |
12:50-14:20 |
303 |
6. Foreign Exchange Rate Determination and Intervention. Overview of homework assignments. Case study. |
|
|
8 |
Sat |
11 February 2023 |
14:40-16:10 |
303 |
Overview of homework assignments. Case study. |
|
|
9 |
Thu |
23 February 2023 |
18:00‑19:30 |
303 |
7. Foreign Currency Derivatives |
|
|
10 |
Thu |
23 February 2023 |
19:40-21:10 |
303 |
7. Foreign Currency Derivatives. Overview of homework assignments. Case study. |
|
|
11 |
Fri |
24 February 2023 |
16:20‑17:50 |
303 |
8. Transaction Exposure |
|
|
12 |
Fri |
24 February 2023 |
18:00-19:30 |
303 |
8. Transaction Exposure |
|
|
13 |
Sat |
25 February 2023 |
9:00-10:30 |
303 |
8. Transaction Exposure |
|
|
14 |
Sat |
25 February 2023 |
10:40-12:10 |
303 |
Overview of homework assignments. Case study. |
|
|
15 |
Sat |
25 February 2023 |
12:50-14:20 |
303 |
Overview of homework assignments. Case study. |
|
|
16 |
Sat |
25 February 2023 |
14:40-16:10 |
303 |
Overview of homework assignments. Case study. |
|
|
17 |
|
|
|
|
Consultation |
|
|
18 |
|
|
|
|
Examination |
|
HOMEWORK ASSIGNMENTS
LITERATURE
1. Eiteman D. Stonehill A., and M.H. Moffett, 2019. Multinational Business Finance. International Edition, 15/E, ISBN-10: 0136096689.
2. Shapiro, A.C. 2015. Multinational Financial Management. Prentice Hall.
ASSESSMENT REQUIREMENTS:
For the final assessment, students must work actively during the semester; perform homework assignments and successfully pass the Examination.
FINAL ASSESSMENT CRITERIA:
Homework assignments. 2 point doing homework assignments. Assignments in Word format must be submitted to the teacher before the beginning of the Examination arvydas@paskevicius.com The assessment of the completed assignment is multiplied by 0.2 and added to the final assessment. The assessment of late tasks is reduced by 50%
Work in auditorium (seminars and lectures). 3 point: a student was actively involved in solving the tasks and case studies during seminars and average grade is 10. Less than 3 point: a student was involved in solving the tasks and case studies during seminars and average grade is less than 10. 0 points: a student din not solve the tasks and case studies during seminars
Examination Examination (closed and open questions), problem solving. Students must complete at least 50% of the assignments. If the grade is 5 or higher, it is multiplied by 0.5 and added to the overall final grade. Failure to pass the examination will result in a negative final evaluation.
COMPOSITION OF THE FINAL ACCUMULATIVE GRADE:
The final accumulative grade shall be composed of:
Homework assignments – 20 %
Work in auditorium (seminars and lectures) – 30%
Examination – 50%
TEST RESULTS
Grįžti