Page 6 - PowerPoint Presentation
P. 6

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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