Syllabus E1. The Role Of The Treasury 1 / 9

a) Discuss the role of the treasury management function within:

i) The short term management of the organisation’s financial resources 
ii) The longer term maximisation of corporate value 
iii) The management of risk exposure.

b) Discuss the operations of the derivatives market, including:
i) The relative advantages and disadvantages of exchange traded versus OTC agreements
ii) Key features, such as standard contracts, tick sizes, margin requirements and margin trading
iii) The source of basis risk and how it can be minimised.
iv) Risks such as delta, gamma and theta, and how these can be managed
The Role Of The Treasury