Page 8 - PowerPoint Presentation
P. 8
THE TREASURY FUNCTION
Outcomes
• Identify the need for and evaluate the usefulness of derivatives
(including forward and future contracts, swaps, put and call options).
• Set up different hedges and calculate the cost thereof (at an
intermediate level).
• Suggest appropriate derivative instruments to manage the risk
• Make use of the Black Scholes model to value options.
• Distinguish between the use of derivatives for purposes of hedging and
speculation.
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