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CEA CAPA Partner Institution: CEA CAPA Rome Center
Location: Rome, Italy
Primary Subject Area: Finance
Instruction in: English
Course Code: FIN360FCO
Transcript Source: University of New Haven
Course Details: Level 300
Recommended Semester Credits: 3
Contact Hours: 45
Prerequisites: Prior to enrollment, this course requires you to have completed either Principles of Finance or Managerial Finance in addition to Intermediate Finance or Corporate Finance.
DESCRIPTION
This course analyzes the main financial challenges that companies face in an international context. Globalization and the increasing economic integration of goods, services, and financial markets at the international level present governments and enterprises with both opportunities and challenges. Key dimension that distinguishes domestic finance from international finance is international risk. Fluctuations in exchange rates, interest rates, and inflation require risk identification, risk measurement and hedging, important tasks for international finance.
This course explores the main challenges of international financial transactions and is divided into two sections. First, students are familiarized with exchange rate determination, balance of payments, the international monetary system, the European Monetary System, and the parity conditions in real markets and financial markets. Second, they examine the different derivatives for hedging (options, forwards, futures, and swaps), and exposure measurement (translation, transaction and economic exposure). Discussions of course readings are combined with exercises to encourage practical application of the studied topics and concepts.
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