After successful completion of the course, students are able to value unconditional forward contracts and to use them to hedge against foreign exchange risks, interest rate risks, or commodity price risks to increase the firm value.

Furthermore students will be able to value conditional forward contracts and to use them for hedging purposes to increase the firm value.

Forward and Futures

Options

IFRS financial statement issues and valuation methods

Fair Value Hedging, Cash Flow Hedging, Net Investment Hedging

Presentation of main teaching topics;

Calculation and discussion of exercises;

Discussion of cases

The first session is scheduled for Wednesday, March 5^st, 2025, 18:00 c.t., in lecture room 1 (Hörsaal 1), first floor, Theresianumgasse 27.

The TUWEL course with all materials (slides, videos (for first part of slides), exercises, take home exams) will be available from March 1^st, 2025, onwards..

The basis of this course (Financial Management and Reporting (330.215)) is the course Project and Enterprise Financing (330.214). For students taking part in Financial Management and Reporting (330.215) it is highly recommended also taking part in the course Project and Enterprise Financing (330.314) as Financial Management and Reporting (330.215) builds on the knowledge in Project and Enterprise Financing (330.314).

Test 1: 40 points can be reached; topics of the exam: Part 1
Test 2: 40 points can be reached; topics of the exam: Part 2
Take Home Exam 1 (TH1): 6 points
Take Home Exam 2 (TH2): 8 points
Take Home Exam 3 (TH3): 6 points

There is no threshold score per test or per take home exam. Only the total number of points acquired over all tests and all take home exams is relevant for the overall evaluation, thus, the sum of points achieved in test 1 and 2 plus the sum of points achieved in take home exam 1, 2, and 3. In total a maximum of 100 points can be reached.

Evaluation scheme:

Points:              Grade:
00.00 – 44.99       5
45.00 – 58.74       4
58.75 – 72.49       3
72.50 – 86.24       2
86.25 – 100.00     1

The minimum number of points for a positive grade (45.00) can be achieved by taking part in only a selection of tests and take home exams (e.g. only Test 1 and TH1, only Test 1 and TH2, only Test 2 and TH3, etc.). Of course, students can take part in both tests (test 1 and 2) and all three take home exams. But none of the 5 partial achievements ins required/necessary for achieving a positive assessment. A retake is therefore not necessary.

Attention: The evaluation scheme is fixed and not variable. There are no further additional or compensational tasks.

Knowledge of the topics taught in the course:

* Project and Enterprise Financing (320.214)