1. Challenges and Opportunities
The airline industry is highly competitive, characterized by low profit margins and high fixed costs. Under such
environment, Cathay Pacific Airways (CX) faces various challenges and opportunities.
Challenges: rising fuel c
- Short-Term (maturity < 1 year)
- Long-Term (maturity > 10 year)
- Intermediate term (maturity in-between)
- Represented $38.2 trillion at the end of 2012
- Pay dividends, in theory forever
- Represents an ownership claim in t
The Nature of Derivatives
- An instrument whose value depends on the values
of other, more basic, underlying variables
- Can be dependent on almost any variable, from the
price of hogs to the amount of snow falling at a
certain ski resort
1. Forward Contr
(10 points) A trader buys a European put on a share for $3. The stock price is $42 and the strike price
is $40. Under what circumstances does the trader make a profit? Under what circumstances will the
option be exercised? Draw a diagram showing the va
Describe the competitive environment of ECCO and determine how well ECCO is
positioned (versus the competitors) to take advantage of changes in the industry.
What are the main resources and competencies of ECCO over their competitors?
Analyse IMAXs general and industry environments and identify the
opportunities and challenges it faces.
Discuss IMAXs business strategy and analyse how IMAXs resources, capabilities
and competencies support its business and corporate strategie
Members of the public generally believe the property market is still overheated with unexceptionally high
prices. Hence the government is implementing financial measures by raising the property stamp duty for the
second time in three years to tame soaring
1. How did Sony become a diversified company? What was the strategic rationale for
entering the entertainment sector? Was it a good choice?
2. Evaluate the corporate strategy based on recent financial performance.
3. Based on your evaluation of Sonys
- Cookware business
1. Why did DuPont get into trouble in China? Who should be responsible, DuPont or
its local licensees?
2. Is further participation in the Chinese domestic cookware market worthwhile for
3. If DuPont stays in the C