International Business Finance Session 1
International Financial Management &
Corporate Hedging
Disclaimer: This set of slides was prepared for the ISUP summer course at Copenhagen Business School (CBS). It may contain errors. Do not cite or distribute without the authors‘ prior consent. The slides are accompanied by an online Wiki covering all topics and calculations. The Wiki script is also available in print.
Dr. Jakob Müllner
Vienna University of Business and Economics
Agenda Graduate Course
I.
Introduction
Organizational Matters
FX Markets and Quotations
II. Foreign Exchange Exposure
III. Hedging Instruments and Currency Options
IV. Practical issues in Corporate Hedging and State of the
Art Research
Dr. Jakob Müllner
Vienna University of Business and Economics
4
Introduction
I.
Organizational Matters
II.
FX Markets and Quotations
Dr. Jakob Müllner
Vienna University of Business and Economics
5
Learning Outcomes Undergraduate Course
Teaching elements
Literature based learning
Primary textbook (Madura & Fox)
Course slides
Course script
In class learning
In class calculations
In class discussions
I.
know about the history, functioning and use of FX markets
II.
understand how exchange rates affect MNEs and SMEs on different levels III.
assess and measure the effect of different exposures and come up with appropriate risk management processes IV.
manage the different exposures using contractual, strategic or financial instruments
V.
combine different options to create synthetic positions
VI.
calculate outcomes of different hedging instruments in EXCEL using actual CME quotes
Dr. Jakob Müllner
Vienna University of Business and Economics
17
Timetable Undergraduate Course
Class
Class 1
Class 2
Class 3
Class 4
Class 5
Class 6
Class 7
Class 8
Class 9
Class 10
Class 11
Undergraduate international financial management
Day
and hedging
Date
Time
Financial markets environment
Mo
23.06.2014 09:00-11:30
Types of foreign exchange exposure
Mi
25.06.2014 09:00-11:30
Corporate Hedging
Disclaimer: This set of slides was prepared for the ISUP summer course at Copenhagen Business School (CBS). It may contain errors. Do not cite or distribute without the authors‘ prior consent. The slides are accompanied by an online Wiki covering all topics and calculations. The Wiki script is also available in print.
Dr. Jakob Müllner
Vienna University of Business and Economics
Agenda Graduate Course
I.
Introduction
Organizational Matters
FX Markets and Quotations
II. Foreign Exchange Exposure
III. Hedging Instruments and Currency Options
IV. Practical issues in Corporate Hedging and State of the
Art Research
Dr. Jakob Müllner
Vienna University of Business and Economics
4
Introduction
I.
Organizational Matters
II.
FX Markets and Quotations
Dr. Jakob Müllner
Vienna University of Business and Economics
5
Learning Outcomes Undergraduate Course
Teaching elements
Literature based learning
Primary textbook (Madura & Fox)
Course slides
Course script
In class learning
In class calculations
In class discussions
I.
know about the history, functioning and use of FX markets
II.
understand how exchange rates affect MNEs and SMEs on different levels III.
assess and measure the effect of different exposures and come up with appropriate risk management processes IV.
manage the different exposures using contractual, strategic or financial instruments
V.
combine different options to create synthetic positions
VI.
calculate outcomes of different hedging instruments in EXCEL using actual CME quotes
Dr. Jakob Müllner
Vienna University of Business and Economics
17
Timetable Undergraduate Course
Class
Class 1
Class 2
Class 3
Class 4
Class 5
Class 6
Class 7
Class 8
Class 9
Class 10
Class 11
Undergraduate international financial management
Day
and hedging
Date
Time
Financial markets environment
Mo
23.06.2014 09:00-11:30
Types of foreign exchange exposure
Mi
25.06.2014 09:00-11:30