东方航空案例

+ option price
+ option price ---
+option price
+ option +(p-150)*85000
+option
+ option price - (price-200)*315000 -23p+5025 P > 218.5 loss P < 218.5 gain
¥ 43,541,228.00 ¥ 38,132,963.00 ¥ 724,834.00 ¥ -3,332,214.00 ¥ -3,061,644.00 ¥ 3,222,550.00 2006 ending
¥ -13,927,656.00 ¥ 603,955.00 ¥ 4,935,485.00 2007 ending
Balance sheet
2008
Current Asset Noncurrent Asset Total Asset Current Liability Noncurrent Liability Total Liability Debt Ratio ¥ 10,401,069 ¥ 62,782,937 ¥ 73,184,006 ¥ 54,076,709 ¥ 30,172,448 ¥ 84,249,157 115.10%
¥ 1,795,766
Cash and cash equivalents remain ¥ 3,451,010
Hedge and Cost
2008
Unit: million Fuel Cost ¥ 18,480 ¥ 15,237
2007
Realized hedge gain/loss
Total fuel cost Fair value of Unrealized hedge gain/loss
Sell call option
Exercise price = $ 72.35 - $200
2008
quantity=315000
Initiative contract
Passive contract
Passive contract
Three contracts
Buy call option Sell put option Sell call option
7. 【Contract maturity】 Long maturity: 3 years ce-air cannot reduce their holding on time.
Event background
1 The profit of the aviation industry is largely influenced by the price of jet fuel
2 china Eastern Airlines began in 2001 to use interest rate swaps, currency swaps, forward foreign exchange transactions of financial derivatives
Financing Cash Flow
¥ 2,175,763
-43,094
¥ -3,495,133
¥ -16,267 ¥ -332,241 ¥ 1,655,244
Exchange rate effect on Cash and ¥ cash equivalents Net cash and cash equivalents
Reasons 6-7
6. 【High Jet fuel hedge ratio】 Es-airlines: hedge ratio = 41.58% International airlines usual hedge ratio = 20% Higher risk & Benefits Profits in 2005-2007: 2005: 123 million 2006: 213 million 2007: 586 million
8 In December 31, 2008, oil prices fell to 40 U.S. dollars / barrel, according to the China Eastern hedging contracts, China Eastern Airlines a loss of 6 billion 200 million yuan;
Zero cost collar
Gain & loss
Price Buy call option Sell put option [0, 62.35] - option price + option price - (62.35-price)*315000 + option price - (62.35-p)*315000 (62.35, 150] - option price (150, 200] - Option + (price-150)*85000 (200, +) - Option price +(price-150)*85000
Chinese Eastern Airlines
Hedge case
韩 柳 王 蔚 陶 烨 张馨予 32014140185 32014140181 32014140098 32014140183
CONTENTS
01 background 02 analysis
Part Two
Part One
03 Failure reasons 04 Results &
3 in 2003 begin to use fuel option hedging and until 2008 its fuel hedging business has been profitable positions.
Event background
4 From 2003 to July 2008, crude oil prices soared, New York crude oil futures prices even up to $147.5 a barrel. 5 In June 2008, china Eastern Airlines signed 55 long-term fuel contract with a number of internationally renowned investment banks, including buying call options and put options, short put., short call
Operationg Cash Flow ¥ 1,382,712.00 2008 ending Total Asset ¥ 73,184,006.00
¥ 66,504,481.00 ¥ 59,819,787.00
Total Equity
¥ -11,599,346.00
¥ 2,517,750.00
¥ 1,974,892.00
Event background
6 July 2008 onwards, affected by many adverse news, international crude oil spot prices sharply lower, from the highest $147 / barrel fell to $45 / barrel
Reasons 3-5
3. 【Rely too much on international investment bank】 → In July 2008, international fuel prices rose up to $140/ barrel → Nearly every foreign investment bank said that fuel prices will keep on rising → Signed too much hedge contracts 4. 【Complex product structure, need a high degree of specialization】 took structural option into hedge → reduce the cost of options 5. 【non-reciprocal contracts】 one right & two obligations
Sell call option Gain/loss
GRAPH
Reality
CONTENTS
03
Part Three
Result & Reason
王蔚 32014140181
Major accounting data
2008 Operating profit Revenue Net Income ¥ 41,842,361.00 ¥ -13,985,108.00 2007 2006
7 in November 27, 2008, the notice pointed out that up to October 31, 2008, China Eastern Airlines hedging losses totaling 1 billion 830 million yuan
Event background
¥
¥ ¥
-8
18,488 - 6,256
¥
¥ ¥
120
15,117 97
Reasons
Reasons 1-2
1. 【fuel hedge contracts】 Lock the price range → did a lot of hedge for premium → Huge loss
2. 【“Hedge" and “Speculation" --- double trading properties】 No clear target & Hedge purpose I源自文库 didn’t follow the hedge principle. Hedge: Long call Speculation: Short put & Short call
9 January 2009, the SASAC gave3 billion yuan through the nonpublic offering of Eastern Airlines, the amount increased to $7 billion after two weeks
CONTENTS
2007
¥ 9,690,252 ¥ 56,814,229 ¥ 66,504,481 ¥ 35,855,447 ¥ 27,426,142 ¥ 63,281,589 95.20%
Cash Flow Statement
2008 Operating Cash Flow Investing Cash Flow ¥ 1,382,712 ¥ -1,719,615 2007 ¥ 4,935,485 ¥ -1,756,326
Part Four
Part Three
Enlightens
CONTENTS
01
Part One
background
陶烨 32014140098
Company profile
the core business of East Airways group provide services among 70 million passengers per year volume of passenger traffic ranked the world's fifth. As a member of the Tianhe alliance Constructing Shanghai as the core hinge, access to the world's 187 countries, can address 1000 destinations.
02
Part Two
analysis
韩柳 32014140185
Three contracts
Main reason
Buy call option Exercise price=$150 Quantity=85000
Sell put option
Exercise price=$62.35 Quantity=315000