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FIN521 Corporate Treasury Management (8)

Abstract

This subject examines tools and techniques for the management of financial price risk. The subject examines the rationale for financial risk management, the dimensions of financial price risk (interest rate, currency and commodity price risk), and the pricing and application of derivative financial instruments used in the management of financial price risk. Assumed knowledge for this subject is equivalent to that covered in FIN516 and FIN530.

+ Subject Availability Modes and Location

Session 1
DistanceBathurst Campus
Continuing students should consult the SAL for current offering details: FIN521
Where differences exist between the Handbook and the SAL, the SAL should be taken as containing the correct subject offering details.

Subject information

Duration Grading System School:
One sessionHD/FLSchool of Accounting and Finance

Assumed Knowledge

FIN516

Enrolment restrictions

Postgraduate Students only

Learning Outcomes

Upon successful completion of this subject, students should:
- be able to demonstrate an understanding of the pricing and application of derivative financial instruments within the context of a corporate treasury;
- be able to identify price risks and evaluate the most appropriate hedging strategies;
- be able to demonstrate an understanding of the impact of treasury decisions within the framework of the entire corporate organisation.

Syllabus

The subject will cover the following topics:
Introduction Why manage financial price risk? Risks in fixed interest securities Yield curve mathematics The Corporate Treasury Functions Strategy formulation Performance measurement Risk Management Instruments Forward contracts Futures Options Swaps Financial Risk Management Exposure identification Assembling the financial building blocks Risk management strategy Interest rate risk and security design Alternative approaches to interest rate risk management Applications of risk management instruments Managing foreign exchange risk Case study

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The information contained in the 2015 CSU Handbook was accurate at the date of publication: 01 October 2015. The University reserves the right to vary the information at any time without notice.