This book has modular structure that promotes flexibility in coverage. Chapter 4 on the international parity conditions extends the discounted cash flow algebra of the first course in finance to a multi-currency setting. In particular, it develops and applies the algebra of moving cash flows over time and across currencies. Advanced material is placed in an appendix. Advanced material is placed in chapter appendices so that study can be tailored to each individual's objectives, interests, and level of preparation. In Multinational Finance, the chapter on Managing Transaction Exposure to Currency Risk provides an overview and comparison of the various derivative instruments and their use in risk hedging. This allows the more in- depth chapters on derivatives to be skipped without loss of continuity. Multinational Finance emphasizes the managerial aspects of multinational finance with graphs, figures, and a liberal use of real-world examples. The text presents an in-depth treatment of the international financial environment, including currency and Eurocurrency markets and the international parity conditions. The text includes detailed treatments of futures, options, and swaps and their use in currency risk management. Entire chapters are devoted to managing the multinational treasury, as well as to managing the multinational's exposures to transaction, operating, translation, and country risks. The valuation and structure of multinational operations. The heart of the text is the valuation and management of the multinational corporation's investments. The chapter on cross-border capital budgeting in the 4th (2008) edition is much more extensive than in competing texts, addressing valuation in disequilibrium conditions as well as special circumstances such as expropriation risk, subsidized financing, and blocked funds. The 5th edition (2012) will expand the treatment of parity disequilibria to include exchange rate expectations that differ from parity and the project's operating exposure to currency risk. (This work has already been completed and an article is under review at a major journal. The resulting treatment turns out to be both simpler and more general than the treatment in the 4th edition. No competing texts discuss these real-world issues.) Other chapters cover multinational financing, taxation, international investments as real options, and international corporate governance. Distinctive chapters on key topics. Distinctive chapters are devoted to topics of special interest to practitioners of multinational finance.