The treasury plays a vital role in all organizations as its duty is to merge some
major and interdependent functions together. The major functions such as risk
management, cash management, banking relationships, liability and equity manageme
Lecture 7: Futures & Forwards CALCULATIONS
1. Tree Row Bank has assets of $150 million, liabilities of $135 million, and equity of $15 million. The asset
duration is six years, and the duration of the liabilities is four years. Market interest rates are 1
Question 2 (b): Explain how to evaluate the performance of a organization treasury
manager given the objectives and functions of the treasury department.
The basic mission of the treasury division is to manage the liquidity of a
organization. This implies
FIN306 Tutorial 1 (Lecture 1 and Reading 1)
1. Outline the key functions performed by a corporate treasury operation. To what extent are these
functions common to most corporate organizations?
A. Cash management maximization of corporate funds so that fun
Question 1 (b): Discuss the role of risk taking culture in organization that
encourages such frauds.
According to Farrell and Hoon (n.d.), risk culture can be defined as the system
of values, beliefs, attitudes, understanding and behaviours exist througho
Question 1(a): Explain the faud at Socit Gnrale, the weakness in Socit
Gnrale system and how they handled the fraud once it was revealed.
In January 2008, the French bank Socit Gnrale lost about $7.2 billion
closing out positions over three days of tradin
Lecture 6: Financial Instruments (Tutorial 6)
1. What are derivative contracts? What is the value of derivative contracts to the managers of FIs?
(15m) Which type of derivative contracts had the highest volume among all U.S. banks as of
Question 2(a): Explain the types of control and monitoring systems that can be put
in place to control rogue trading in securities by treasury division.
A rogue trader acts freely of others; they usually harm the benefits of both their
customers and their