Chapter 01 - Why Are Financial Institutions Special?
Why Are Financial Institutions Special?
Solutions for End-of-Chapter Questions and Problems
What are five risks common to financial institutions?
Default or credit risk of assets, interes
Prepared by Patty Robertson
May not be used without permission
Like all publicly-traded firms, financial
institutions (FIs) attempt to maximize
stockholder value. However, FIs fac
KENNESAW STATE UNIVERSITY
FIN 4620 Financial Management of Financial Institutions
At the end of this course, you will be able to:
Chapter 1 - Why are Financial Institutions Special?
List the industry players.
Explain the special role
Quiz Swaps Probs Fallll Fin4620 Name E
OPEN NOTES (no laptops, electronic devices) SHOW CALCULATIONS T GET CREDIT
I. Use the following FI balance sheet
Consumer loans $100 million Liabilities $308 million
Commercial Loans 250 million Equity $42 mill
Quiz Ch 13. 22 PROBLEMS NAME [E /\/K SQLUT? 0N
OPEN NOTES - NO LAPTOPS SHOW CALCULATIONS TO GET FULL CREDIT
1. Thrifty Bank has assets oillion, liabilities 0f39nilliom and it)" of$48 million. The average
duration gassets i 5.5 gears, and the average durat
Chapter Twenty Three
Futures and Forwards
Solutions for End-of-Chapter Questions and Problems: Chapter Twenty Three
What are derivative contracts? What is the value of derivative contracts to the managers of FIs? Which
type of derivative contracts had
OPEN PAPER NOTES SHOW CALCS
1. An FI has $600 million of assets with a duration of eight years and $540 million of liabilities with a duration
of three years. The FI wants to hedge its duration gap with a swap that has fixed-rate payment