Summary This report discusses whether and how JetBlue should list its shares on public from several angles. Two principal incentives prove that the IPO process could be inevitable‚ even without an optimal offering price‚ and valuation models including multiples comparison and income analysis imply the firm may be underpriced. Given the situation and all assumptions‚ an increment in either offering size or price is suggested. 2 SWOT and Background JetBlue started by following Southwest’s approach of
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[键入公司名称] | Report | Dynamic Hedging and Implied Volatility | | sony | | | Part I Dynamic Hedging 1. Basic Information Company | 3M Co. (MMM) | Two different options to mimic | 1) X=87.5 call option‚ expiring at Nov 16‚ 2012. 2) X=90 call option‚ expiring at Nov 16‚ 2012. | 2. Calculate the annualized standard deviation: σ=0.1357502 Completed calculation table (See Appendix) 3. Replicating Portfolios X=87.5 call option Completed calculation table
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Fuel Hedging in the Airline Industry: The Case of Southwest Airlines By Dave Carter a‚ Dan Rogers b‚ and Betty Simkins c a College of Business Administration‚ Oklahoma State University‚ Stillwater‚ OK 74078-4011‚ Phone: (405) 744-5104‚ Email: dcarter@okstate.edu b School of Business Administration‚ Portland State University‚ Portland‚ OR 97207-0751‚ Phone: (503) 725-3790‚ Email: danr@sba.pdx.edu c CONTACT AUTHOR: College of Business Administration‚ Oklahoma State University‚ Stillwater
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foreign currencies as Euros (EUR) and British Pounds (GBP). Consequently‚ foreign exchange hedging has a crucial importance for the company because it provides protection against different types of risk that derive from its activity. In order to reduce risk‚ the company is using two hedging derivatives: forward contracts and put options to sell dollars. The aim of the paper is to determine an appropriate hedging policy which answers two main questions: how much to hedge‚ and in what proportions of
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Jet Blue´s Business- level strategy; value and cost drivers Jet Blue uses to create and maintain ist competitive position Founded by the discount airline veteran David Neeleman in 2000‚ JetBlue Airways has quickly become one of the largest discount airlines in the United States. Starting primarily by serving the East Coast‚ the airline has since expanded throughout the country and entered the international market. The reasons for its early success are numerous: JetBlue entered the market with one
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Hedging in the Mining Industry Strategy‚ Control and Governance Contents Foreword Chapter 1: Executive summary Chapter 2: To hedge or not to hedge? Considering a strategy 1 2–4 5 – 12 Chapter 3: What tools are available? Implementing the hedging strategy 13 – 24 Chapter 4: How do we control and monitor a hedging programme? 25 – 36 Chapter 5: How‚ why and to whom do we communicate our risk-management strategy? 37 – 44 Chapter 6: What are the accounting implications? 45 – 49 Appendix
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Case study—JetBlue airways IPO valuation Introduction: As a leader of airways industries‚ JetBlue is successful because of professional services and a good management team. In 2002‚ JetBlue became a public company. Despite the fact that US airline industry had witness 87 new airline failures over the previous 20 years‚ Jetblue overcame difficulties and expressed confidence in the bright future. Before going public Before going public in 2002‚ JetBlue has outstanding advantage in the whole
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AFM 322 Hedging Currency Risk at AIFS 1. Case Synopsis Christopher Archer-Lock and Becky Tabaczynski both work for American Institute for Foreign Study (“AIFS”). Archer-Lock is the controller of AIFS and Tabaczynski is the CFO of AIFS’s high school travel division ACIS. AIFS a student exchange organization that organizes educational and cultural exchange programs throughout the world. Founded in the U.S. in 1964‚ AIFS has annual revenues of close to $200 million and sent more than 50‚000 students
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AIFS Case Finance in a Global Environment Rochester Institute of Technology Group 4 Mengjie Ban Liu Gu Danielle Sherwood Bill Speight Mohamed Waheed Summary The American Institute for Foreign Study‚ also known as AIFS‚ is a student exchange organization that specializes in academic and cultural exchange programs for both college and high school students. The AIFS was founded by Sir Cyril Taylor in 1964‚ in the United States‚ and is split into two divisions: the Study Abroad College
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JetBlue Airways IPO Valuation Summary In July 1999‚ David Neeleman announced his plan to launch a new airline that would bring “humanity back to air travel.” Despite the fact the airline industry had 87 new-airline failures in U.S. over the past 20 years. Neeleman’s plan convinced a group of investors and quickly raised $130 million from venture-capital community. This is the way JetBlue Airways established. With its strong capital base‚ JetBlue acquired a fleet of new Airbus A320 aircraft and focused
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