RISK MANAGEMENT PRACTICES IN THE AIRLINE INDUSTRY by Sharon Fernando PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS In the Faculty of Business Administration Financial Risk Management O Sharon Fernando 2006 SIMON FRASER UNIVERSITY Summer 2006 All rights reserved. This work may not be reproduced in whole or in part‚ by photocopy or other means‚ without permission of the author. APPROVAL Name: Sharon Fernando Degree: Master of Arts Title of Project:
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macro-economic variable that has come into great focus is interest rate. The volatility of interest rates has increased manifold in the last couple of years. Interest rate risk management has become very important and assorted instruments like interest rate derivatives (interest rate swaps‚ forward rate agreement and interest rate futures) have been developed to deal with such types of risk. Therefore the present paper has been designed to through light on this particular segment with reference to Interest Rate
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in the Journal of Political Economy. From this model‚ the Black-Scholes option pricing Model (BSM) was deduced as a means to price European options. The simplicity of the use of the BSM allowed traders to effectively price and trade options and derivatives in markets all over the world. It is still widely used today‚ although with some modifications‚ by market participants. This paper seeks to evaluate the strengths and weaknesses of the Black-Scholes option pricing model. Options To better understand
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mathematics - and although the Royal Society found Leibniz effectively guilty of plagiarism later‚ this was not likely the case. Both men came to similar discoveries in different ways - Leibniz came to integration first‚ while Newton began his work with derivatives. Although Newton discovered the principles of calculus first - he did not publish them until many years after Leibniz did. Leibniz published his first paper employing calculus in 1684‚ but Newton did not publish his fluxion notation form of calculus
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Fuel Hedging for Delta Airlines Delta Air Lines • A major United States Airline • Results of operations are impacted by changes in • Aircraft fuel prices • Interest rates • Foreign currency exchange rates • Derivative contracts Derivative Type Hedged Risk Classification of Gains and Losses Fuel hedge contracts Interest rate contracts Foreign currency exchange contracts Increases in jet fuel prices Increases in interest rates Fluctuations in foreign currency exchange rates Aircraft fuel and
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RISK MANAGEMENT AND INTERNAL CONTROLS Introduction: In 1995 Britain’s oldest merchant bank of two hundred years came to a dramatic and fatal halt. The bank was Barings. The demise of the bank was brought about as a result of the actions of a derivative trader‚ Nick Leeson‚ stationed in Singapore. Without a careful and considered review one may be tempted to conclude that the blame rests solely on Nick Leeson. But if you think with analytical mind‚ you will ask: how is it possible that this one
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Eigen values and eigen vectors. Calculus: Functions of single variable‚ Limit‚ continuity and differentiability‚ Mean value theorems‚ Evaluation of definite and improper integrals‚ Partial derivatives‚ Total derivative‚ Maxima and minima‚ Gradient‚ Divergence and Curl‚ Vector identities‚ Directional derivatives‚ Line‚ Surface and Volume integrals‚ Stokes‚ Gauss and Green’s theorems. Differential equations: First order equations (linear and nonlinear)‚ Higher order linear differential equations with
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Work Files It is time to roll the camera. Using your flashcards‚ review the Vocabulary Props you have had so far. Choose derivatives of 25 different Latin words‚ and write English sentences which include the derivative and the meaning of the Latin word. Example: An aqueduct carries water to Rome. 1. My canine is a truly loyal dog. 2. The conductor decided to lead us the wrong way. 3. My uncle is in the military as a soldier 4. If you are a pacifist then you believe in peace. 5. Due to
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Accounting For Derivatives Menurut GAAP‚ semua derivatif harus dinilai pada nilai yang wajar dan dicatat sebagai aktiva atau kewajiban dalam neraca. Kecuali untuk derivatif yang ditunjuk sebagai hedges‚ keuntungan dan kerugian terkait dengan perubahan dalam nilai wajar dari derivatif harus dilaporkan sebagai bagian dari pendapatan bersih setiap tahun. Menurut peraturan tersebut‚ investor diberi informasi tentang nilai-nilai derivatif dan keuntungan dan kerugian yang timbul dari perubahan dalam
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Avoid Bad Trades Chapter 1 - 5 11. Corporate Finance 12. Securities Markets 13. Equity Investments 14. Fixed Income Investments 15. Derivatives Chapter 6 - 10 Chapter 11 - 15 Chapter 16 - 17 15.29 Interest Rate Options vs. FRAs 15.30 Interest Rate Caps and Floors 15.31 Minimum and Maximum Values for Options 15.32 Straddles and Strangles 15.33 Option Prices and the Time to Expiration Derivatives - Interest Rate Caps and Floors Interest Rate Cap An interest rate cap is actually
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