| CODE | BKF4340 | |||||||||
| TITLE | Treasury Management | |||||||||
| UM LEVEL | 04 - Years 4, 5 in Modular UG or PG Cert Course | |||||||||
| MQF LEVEL | 6 | |||||||||
| ECTS CREDITS | 4 | |||||||||
| DEPARTMENT | Banking, Finance and Investments | |||||||||
| DESCRIPTION | Treasury Management is a study-unit which is built purely on a practical concept. This study-unit is intended to cover the fundamental areas of international treasury, risk management and how it could be applied at a company level. It seeks to introduce the core notions for a treasurer, especially the concept of interest rates, and the fundamentals of Forex. This study-unit focus on the role of treasury in financial risk management by discussing the concept of hedging. Students will be in a position to start understanding the idea of which financial derivative instrument is best to employ and how much as a percentage needs to be hedged. Study-unit Aims: The main aim behind this study-unit is to provide a fundamental understanding on corporate and institutional financial risk management. This study-unit will focus on managing the exposure of interest rate risk and exchange rate risk through the use of various financial instruments - Forwards, Futures, Swaps and Options. Students will have the privilege to experience a hands-on and a practical example driven module by using real Financial Times data. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: • identify interest rate and foreign exchange rate risk exposure faced by various organisations. • create a strategy for a stable corporate environment by minimising these financial risks. • quantify financial risks by selecting the right figures from real FT data. • understand the main uses of each derivative instrument in relation to the specific risk being involved. 2. Skills: By the end of the study-unit the student will be able to: • determine the relationship between the risk and the price of a hedging instrument. • determine the advantages and disadvantages of each financial instrument. • have competence in understanding how financial instruments are employed depending on the companies specific policy. • resolve practical risk management problems. • enhance communication skills and learn how to contribute and listen to others when working on the assignment. Main Text/s and any supplementary readings: • Hull, J.C., (2010). "Options, Futures and Other Derivatives", 7th Ed., Prentice Hall Finance Series. • Bodie, Z., Kane, A., and Marcus, A.J., (2009). “Investments”, 8th Ed., McGraw-Hill/Irwin. • Durdin, M., (2006). “All about Derivatives”, 1st Ed., McGraw-Hill. • Chisholm, A. M., (2004). “Derivatives demystified - A Step-by-Step Guide to Forwards, Futures, Swaps and Options”, 1st Ed., John Wiley & Sons Ltd. |
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| STUDY-UNIT TYPE | Lecture and Tutorial | |||||||||
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| LECTURER/S | Noel Cassar |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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