CTP EPP Updates

Attached is a link to a PDF file of all the chapter video slides. Please use the bookmarks built into the file to navigate the Parts and Chapters.

  • At timestamp 4:30 in the Chapter 12 video, the instructor incorrectly states that the dollar amount remains the same in a repetitive wire. The corrected information is as follows: In a repetitive wire, the date and the dollar amount of the wire change – all other information remains constant. The definition is correct in the printed material within the Essentials of Treasury Management Version 6 and the reading material on Exam Prep Platform in Chapter 12, Topic 2.
  • On page 382 of chapter 12 in the Essentials of Treasury Management Version 6, the second paragraph has been updated as follows: "The International Chamber of Commerce (ICC) has established rules governing commercial L/Cs, known as Uniform Customs and Practice for Documentary Credits (UCP). The current rules are outlined under UCP 600, and these rules affect almost every credit issued under the ICC’s UCP. Most notably, UCP 600 establishes an absolute deadline of five banking days to review documents and determine whether to pay or decline a draw."
  • On page 513 of chapter 16 in the Essentials of Treasury Management Version 6, the text for bullet d. Sovereign Risk has been updated as follows: "Sovereign risk is the risk that a government may default on its debt, and political risk refers to the economic impact that a business may face due to political changes or decisions within a country. This includes the risk of expropriation or other loss of foreign asset value. Also, tax risk (i.e., uncertainty about future tax liabilities) must be assessed, especially for multinational organizations that deal with a wide variety of sometimes conflicting tax codes and regulations. This risk can be substantial, given the penalties often assessed with missed filings or the underpayment of taxes."
  • On page 552 of chapter 17 in the Essentials of Treasury Management Version 6, Exhibit 17.7B Put Option Effect incorrectly labels the “out of the money” and the “in the money” sides of the chart, they should be reversed. The exhibit is now correct in the exam prep platform and can be found in Chapter 17, Topic 4, in the “Options” section.
  • On page 568 of chapter 17 in the Essentials of Treasury Management Version 6, the paragraph below the formula for the forward rate incorrectly states that forward points are added to the sport rate when the variable currency interest is lower than the base currency interest rate. This has been corrected in the exam prep platform and can be found in Chapter 17, Topic 6, the “Using Currency Derivatives to Manage FX Risk” section. The corrected section now reads: “The forward rate can also be calculated using the difference in basis points between the two applicable interest rates. Forward points are added to the spot rate when the variable currency interest rate is higher than the base currency interest rate, and vice versa.”
  • In the Chapter 17 video, between timestamps 52:55 and 54:15, there is a discussion around an interest rate futures contract example. The last two sentences on the slide should read as follows: “The holder of the long position pays the seller of the contract 99.08 - 98.75 = 0.33 per unit of the contract” The discussion in chapter 17, topic 5 (or on pages 556 – 557 in the Essentials of Treasury Management, Version 6 book) which covers this topic is correct.
  • On Page 543 of Chapter 17 in the Essentials of Treasury Management Version 6, the third full paragraph has been updated as follows: “For example, suppose the current spot exchange rate2 is 1.1265 US dollars per euro, the six-month forward exchange rate is 1.1221 USD per EUR, and a company has EUR 1,000,000 to invest. Assume also that the current annualized rates for six-month deposits are as follows: the euro deposit rate is 1.2% and the dollar deposit rate is 1.3%. The investing company can deposit the euros for six months and earn EUR 6,000 in interest. However, the company could also convert the euros to US dollars at the current spot rate and invest the resulting $1,126,500 at 1.3% for six months, returning $1,133,822.25, or EUR 1,010,446.71, for a profit of EUR 10,446.71. By investing in a covered forward, the company increases its resulting revenue by EUR 4,446.71 (less any fees charged for the forward), or 74%. As market participants buy US dollars in the spot market and sell US dollars in the forward market, the FX rates will move toward interest rate parity."
  • On page 103 of the text, the bullet “Value Dating” contains an incorrect example about how value dating works in Canada. The sentence “For example, in Canada it is standard practice to charge a payor’s account for the value of a check as of the date the check was written, rather than the date it was actually processed by the bank.” Has been removed. This has been corrected in the exam prep platform and can be found in Chapter 4, Topic 4.