INTERNATIONAL FINANCIAL MARKETS
FINANCE (FIN) 358 - 001
Instructor: Dr. Kyle Jones
Office: Rm. 392B, McGee Bld
Office Phone: 936-468-1442
Office Hours: MW: 9:30-11:00 a.m., 3:45-5:00 p.m.; TR: 10:00-11:30am, 3:45-4:30pm
Class Meetings: MW 11:00-12:15 p.m., McGee 483
Course Website: http://www.cob.sfasu.edu/kjones/index.html
This course is designed to give the student a basic understanding of international financial markets and the
institutions that are unique to these markets. Specific topics include foreign exchange markets and exchange rate
regimes, the economics governing currency behavior, international debt, equity, and money markets, the
measurement and management of foreign exchange and country/political risk, and international banking and
portfolio management. These topics will be grouped into three primary areas of study: Foreign Exchange Markets,
International Securities and Portfolio Management, and International Banking and Money Markets.
PRE & CO-REQUISITES:
Pre-requisites: FIN 333
Electronic Textbook (see course webpage for details)
GRADES & POLICIES:
1. Graded Material:
Exams (3x100) 300
Assignments (6x25) 150
Total Points 450
A = 405+ B = 360+ C = 315+ D = 270+ F < 270
Assignments must be turned in on the scheduled due date. Late assignments are not accepted. If you have
some conflict keeping you from turning in an assignment by the due date, then you can turn it in early.
3. Cell Phones and Pagers:
Turn off & put away cell phones, i-pods and any other electronic device other than your calculator.
4. Class Attendance:
Attendance is voluntary. However, make-ups on exams and quizzes will be allowed ONLY for the
following university accepted excuses:
o Absences related to Health, family emergencies, and certain university sponsored events.
In the case of university sponsored events you must provide me with written notice (from
the faculty or staff member in charge of the event) PRIOR to the event.
In the case of health or family emergency you must provide me with written notification
from a professional that you or your family member saw (e.g. a doctor, nurse, etc) AND
this memo must have contact information so I can verify the memo.
o No other reason will merit a make-up.
At the teacher’s discretion the classroom door may be closed and locked shortly after the start of class
and will not be opened for anyone arriving late. If the door is closed and locked and you leave the
classroom for any reason you will not be let back in for the duration of that class session.
This policy will be invoked if a number of students persistently show up to class late or leave and re-
enter the room during class hours.
On exam days, if you leave the classroom then you must turn in your exam and will not be allowed to
work on it further. Go to the bathroom, take care of personal business, etc. BEFORE class time
CHAPTER TESTS CHAPTER TITLE
Financial & Economic Aspects of the FOREX Market:
The Market for Foreign Exchange
International Financial Policy (economics of FOREX market)
International Monetary System (history of FOREX market)
Balance of Payments
Handout Price Elasticity & J-Curve
International Parity Relationships
The International Economy
Mon. 10/5 Test 1
International Financial Markets & Portfolio Management:
Futures and Options on Foreign Exchange
Interest Rate Swaps, Cross-Currency Swaps, and Credit Default Swaps
International Debt Markets
Handout Hedged & Unhedged Bond Returns
A Basic Look at Portfolio Management and Capital Market Theory
International Portfolio Investment
Handout Equity Returns
Wed. 11/4 Test 2
International Banking & Money Markets:
International Banking and Money Market
Handout Eurobanking & Eurocurrency Market
Foreign Exchange Risk
Handout Money Market Hedge
Eurodollar Futures and Interest Rate Risk [Futures & Options on FOREX]
Forward Rate Agreements and Interest Rate Risk [Int’l Bnkg & Money Mkt]
International Financial Institutions and Regulations
International Trade Finance
Mon. 12/14 Test 3
CHAPTERS (AND SECTIONS OF CHAPTERS) MAY BE COVERED OUT OF SEQUENCE. CHECK THE
COURSE WEBPAGE ON A REGULAR BASIS FOR MATERIAL THAT WILL BE COVERED IN EACH LECTURE.
TEST DATES ARE TENATIVE. CHECK COURSE WEBPAGE FOR CHANGES/UPDATES TO THE SCHEDULE.
NO CLASS ON THE FOLLOWING DATES: 9/7 (LABOR DAY), 11/25 (THANKSGIVING
Assignments Due Date
Article Review (economics of FOREX & parity) Mon. 9/21
Balance of Payments Construction & Interpretation Wed. 9/30
FOREX Forecasting & Derivatives Speculation Mon. 10/28
International Portfolio Analysis & Diversification Mon. 11/4
Hedging Interest Rate & FOREX Risk Mon. 11/30
Company Risk Assessment – Review of 2008 10K Report Wed. 12/9
CHECK COURSE WEBPAGE ON A REGULAR BASIS FOR ANY CHANGES TO ASSIGNMENTS AND/OR DUE
Rusche College of Business
Program Learning Outcomes:
Program learning outcomes define the knowledge, skills, and abilities students are expected to demonstrate upon
completion of an academic program. These learning outcomes are regularly assessed to determine student
learning and to evaluate overall program effectiveness. You may access the program learning outcomes for your
major and particular courses at http://cobweb.sfasu.edu/plo.html.
General Student Policies:
The following policies apply to all students enrolled in courses at Stephen F. Austin State University. You may also
access these policies at http://cobweb.sfasu.edu/gsp.html.
Academic Integrity (A-9.1)
Academic integrity is a responsibility of all university faculty and students. Faculty members promote academic
integrity in multiple ways including instruction on the components of academic honesty, as well as abiding by
university policy on penalties for cheating and plagiarism.
Definition of Academic Dishonesty
Academic dishonesty includes both cheating and plagiarism. Cheating includes but is not limited to (1) using or
attempting to use unauthorized materials to aid in achieving a better grade on a component of a class; (2) the
falsification or invention of any information, including citations, on an assigned exercise; and/or (3) helping or
attempting to help another in an act of cheating or plagiarism. Plagiarism is presenting the words or ideas of
another person as if they were your own. Examples of plagiarism are (1) submitting an assignment as if it were
one's own work when, in fact, it is at least partly the work of another; (2) submitting a work that has been
purchased or otherwise obtained from an Internet source or another source; and (3) incorporating the words or
ideas of an author into one's paper without giving the author due credit. Please read the complete policy at
Withheld Grades Semester Grades Policy (A-54)
Ordinarily, at the discretion of the instructor of record and with the approval of the academic chair/director, a
grade of WH will be assigned only if the student cannot complete the course work because of unavoidable
circumstances. Students must complete the work within one calendar year from the end of the semester in which
they receive a WH, or the grade automatically becomes an F. If students register for the same course in future
terms the WH will automatically become an F and will be counted as a repeated course for the purpose of
computing the grade point average.
Students with Disabilities
To obtain disability related accommodations, alternate formats and/or auxiliary aids, students with disabilities
must contact the Office of Disability Services (ODS), Human Services Building, and Room 325, 468-3004 / 468-1004
(TDD) as early as possible in the semester. Once verified, ODS will notify the course instructor and outline the
accommodation and/or auxiliary aids to be provided. Failure to request services in a timely manner may delay
your accommodations. For additional information, go to http://www.sfasu.edu/disabilityservices/.