Question 4a (10 marks) Explain Four (4) Treasury Functions within an organisation

Question 4b (15 marks) Suppose that you are a trader of JP Morgan allowed to do arbitrage. Annualized six month LIBOR for the Yen and the U.S. dollar are: Bid (deposit) Ask (Borrow) at 0.5%-0.625% Bid (deposit) Ask (Borrow) $ at 5.375%-5.5% From a phone call to a trader at Daiwa Bank, you learn that Daiwa will let customers buy and sell spot at 100.00-50 /1$. A trader at Barclays is simultaneously quoting bid and ask 6-month swap rates of 300 points (i.e., he will buy and sell 6-month forward at 97.00-50 /1$).

Can you make money out of those quotes? Explain thoroughly