Jasper Airlines is a French International Airline that flies from Europe to the United States. This business can be exposed to agency problems such as adverse selection regarding the differences between French and American employees. Compensation would have to be accounted for regarding the differences between the Euro and the US Dollar to make sure all employees are compensated fairly. The company would also have to research into benefit programs such as health insurance that would equally apply to employees from both sides.
We would have to conform to the IFRS standards and follow their guidelines closely. We would also have two main offices in both the US and France to ensure that employees from both countries are being treated fairly and are given equal opportunity. All of our flights will be monitored closely by our air traffic control employees working at the airports that we land and takeoff in.
A compensation plan that limits potential agency problems could be one that pays employees a base salary and then increases that salary as the company increases its performance. For example a base salary could be 50,000 and then depending on the earnings that year assuming they are positive an additional bonus.
The return of this would increase, but the risk would as well. This scenario could be profitable because of the assets the merger would offer. The risk that comes along with it is that of the other company
Jasper Airlines would be effected by exchange rate movements in the price of their tickets, and fuel costs. For example, if the airline flew to a place that had a very volatile currency, those tickets would need to be properly cared for. A similar instance would take place for purchasing jet fuel.
Political risk would effect Jasper International because of the international destinations that they could reach. Think of the United States and Cuba. They had political problems and there were no flights going between America and Cuba for a long time. A similar situation could occur with France and another country in the future which could affect Jasper International flight patterns and overall revenue.
A. While our business mostly acts as a service, we are considering entering into the production of certain planes. This would only be available or even possible upon major expansion of the company. Else, we would buy our planes from Boeing. They would be 737 Airbus model. These would be for standard flights. Then we would have smaller planes for flights that are less frequent and travel less mileage. Local demand could possible be affected if one of our major hubs had political problems with either France, America, or Britain as a whole as they are all major players in our operation.
B. One way we could avoid a tariff would be promotions. If foreign countries are trying to limit our airspace in their countries we have a few options. One would be to avoid their country in our operation. Another would be to offer a promotion in order to offset the tariff. A problem with that would be that the loss comes out of the companies pocket.
Advertising is going to be a huge factor in our companies success.
Assuming that the business in France grows, explain how financial markets could help to finance the growth of the business.
If the economy in Europe strengthens, disposable income increases while unemployment decreases. If this is the case, consumer spending would increase which would lead to more travel and vacations. Investing in and stocks and bonds is a great way to finance the growth of our business, but since we do not have a significant amount of capital yet we would need to seek money from outside investors.
As an airline, anything that can negatively affect the economy in either Europe or the United States can have a huge impact on our economy. This is due to the fact that a lot of our customers are traveling for vacation purposes so it is not a necessity to travel if families are short on money. One of our biggest threats is terrorism. Increasing terrorism in Europe can lead people to travel elsewhere. Along with this terrorism instills fear in people and makes them scared of things such as large crowds and airports. The increase of gasoline prices is another threat to our company.
The Euro is at a relatively high point since 2015. But to Hedge against some of the loss when we bring our money to the U.S., we will sell options on the Euro. This will provide us with a stream of income that will offset the exchange.
We could achieve the same by purchasing futures on the Euro Oil is not a currency but it is something that we should consider hedging because our service depends on it. With we should try to lock in a price for x amount of time in order to offset volatility. This could cause the company to overpay in the short term, but could be very beneficial in the long run.
A. If the Banque de France intervened in the Foreign Exchange market by exchanging the Euro for Dollars, downward pressure would be forced upon the Euro which would negatively affect our business in the short run.
B. If the Central Bank of France intervened by lowering interest rates it would cause for less demand for that interest. As a result the currency would have less demand and investors would take their money elsewhere. There would have to be other significant incentives in order to offset the low interest rates.
A. If the Euro rates are higher that means that there will be a discount on the forward rate. Therefore a contract will make less money than that of today’s spot rate
B.It can be used to protect against changes in the future spot rate. If interest rates are high, there is a discount and the future contract can be used to hedge against future changes in the interest rate
C. We will hedge against EUR exposure, as well as hedge against oil prices. Using futures and forward contracts. We could also use put options to hedge. The extra premium associated with options could hinder their hedging capabilities.
A. Higher interest rates lead to an increase in the value of currency in a country. Higher interest rates are more appealing for foreign investors which increases the demand and value for the currency in the country with the higher rates. The higher nominal interest rate in the United States implies a higher level of expected inflation. Which then causes the Euro to decrease
B. Due to the Purchasing Power Parity, Euro value decreases. But with higher rates we would expect investors to be attracted to this high interest debt. This increased investment in Euro debt would drive the value of the EUR up
C. In the inflation differential is not offset We would see a benefit to cash flow from inflation because it is not fully offset by the depreciation that the EUR would see. In the differential is offset then our cash flow sees no gain
D. The only reason to invest on the Euro rates would be if the were offering a better return than US assets. If the EUR exchange are decreases, then those EUR investments will offer low yield. With a high nominal rate, this could cause the EUR to weaken, deterring investors
A. There would be a larger spot rate in the future than today. This entails appreciation of the EUR. This is because EUR rates are lower than US
B. Because the interest rate is less in US, there is a large degree of appreciation in the EUR when using forward rate to forecast the future spot
C.Forward rate because it accounts for adverse effects on the EUR
A. Yes, you should be concerned with this. While it is possible that the rates could offset each other, it is not likely. It should be assumed that the depreciation rate of the Euro
B. You are now subject to the exchange rate movement. Only expenses would be in EUR therefore appreciation of the EUR would adversely affect our company
C. The demand would be affected because for example, if the EUR declines in value, our customers would have to pay more EUR for their tickets. This could cause demand to decline.
A. Assuming that interest rate parity exists, the forward rate of the Euro should have a large discount. If the Euro is expected to depreciate slightly, hedging would not be beneficial, because the future spot rate would be valued higher than the prevailing forward today. Hedging with a money market hedge would involve borrowing Euro’s and converting them into US Dollars. The borrowing rate of the Euro would be lower than than the investment rate in dollars because interest rates in France are lower than the rates in the U.S.
B. Limitations on using currency futures of options in Euro’s for France may be limited to availability of the size that best fits the profit we wish to gain periodically.
C. No do not agree because if the Euro depreciates substantially over time, the amount of dollars we would receive from continuous short-term hedging will decline over time.
A. In order for a multinational corporation such as Jasper airlines to properly report their financial statements, they have to adjust the assets and the liabilities of the company to their home currency. So for our company we would have to convert Euro’s into US Dollars. Since exchange rates can be very volatile in short periods of time, Jasper Airlines may face translation exposure risk and we will need to find ways to hedge against this.
B.Investopedia explains a few techniques that can be performed to hedge against currency translation. One of these techniques includes the purchasing of foreign currency while the others involve the use of currency futures or currency swaps. We believe our best way to hedge against this risk is to sell forward or futures contracts on Euro’s. This protects us from the possible depreciation of the Euro because if that happened we would make a gain off of the contracts we sold.
C. Yes we believe it is completely necessary to hedge against translation exposure. To start, the airline industry is extremely competitive and we have to protect ourselves from as many risks as possible. We need to stay conservative before we start to expand into other parts of Europe. Along with this it helps our company withstand an audit. We need to show investors and other stakeholders that we make smart decisions and that we do not expose ourselves to a tremendous amount of risk. If we do not protect ourselves from currency translation, we might find it hard to gain new investors and to retain old ones.
https://www.investopedia.com/terms/t/translationexposure.asp
A. The success of Jasper Airlines would definitely drive us to plan expansion into other countries in Europe. With this being said we would have to spend a significant amount of money and time on things such as employee training, new airplanes, advertising, jet fuel, etc. Because of this we would need to seek many new investors. If our airline is successful in France, they might see a good opportunity in helping us expand. Countries we can expand into may include Italy, Germany, Spain and other countries that are a part of the European Union. It will be difficult to differentiate our company from other airlines but we believe our up to date features and more comfortable flight experience will give our company a competitive edge.
B. Other locations would be more desirable because it would make our company more flexible. Our customers will have the option of flying to many desired locations in Europe along with being able to travel back and forth to the United States from any of these locations. Naples, Italy is a location we are particularly seeking to expand into because direct flights from Italy to the United States are very limited in the summer. There are many people that would rather pay an extra cost to fly direct rather than to have a layover. Although we are considered a French airline that flies to the United States, we are not limiting ourselves to the opportunity of expansion into other countries, especially in Europe.
C. If we were doing business in multiple different European countries, any negative effect to the Euro can affect our business. If the value of the Euro decreases people won’t spend as much money on vacations which could hurt us.
D.Many factors can increase the probability of these conditions occurring. Weak economic conditions in Europe as stated earlier would hurt us.
E. The data we would try to obtain would include things such as the amount of travelers during different economic conditions and the GDP levels to see how much consumers are spending.
F. Reaching economies of scale with Jet Fuel companies would be ideal for our company if we were to expand. Hopefully we would be able to obtain cheaper overall fuel prices if we increase the amount of flights we are supplying.
G. In order to decide on whether to pursue business expansion that capitalizes on economies of scale even if it would forgo diversification benefits or not, we would have to weigh the options and choose which is the most profitable and beneficial to our company. Expansion throughout Europe is a huge goal of ours so we will most likely pursue it with any opportunity we get.
A. There are many different factors that we would have to analyze in order to conduct a multinational capital budget to assess our long term investments. Some of these important factors include the demand for flights from Europe to the US and from one place in Europe to another, the price we would charge for tickets, the price of jet fuel and the various costs of airplane maintenance and repair. From these factors we can budget for things like Revenue, expenses, depreciation of airplanes and their parts etc.
B. As a company we recognize that we are limited in predicting foreign exchange rate of the invoice currency we choose for our expanded business. Because of this we have come up with several possible exchange rate scenarios. In order to use this information to estimate the future Net Present Value which would help us decide on whether to accept or reject a project we can use sensitivity analysis. Using sensitivity or “what if” analysis in a form such as the Monte Carlo simulation would allow us to derive NPV for each exchange rate scenario. We can then assess the distribution of the NPV’s and determine what we think would be the best scenario for our company.
C. We can include different levels of demand into our simulation which would make it easier to assess the different NPV outcomes.
D. There are a few steps we would have to take to derive a required rate of return for our capital budget analysis. We would first need to determine what rate we would earn if we invested our funds into a dollar denominated risk free asset over the same period. Once we acquire this rate we need to add risk premium to the risk free rate. This premium should be able to reflect the amount of return we would need in order to continue forward with our project.
https://www.investopedia.com/articles/investing/093015/create-monte-carlo-simulation-using-excel.asp
A. Use the US Risk Free rate as a basis, we are using US funds to invest.
B.Our competitor would most likely have a lower RROR because of the lower EUR risk free rate. This competitor also would not have any exchange rate risk because they are based in Europe.
C. LGE is more feasible for our competitor because they have a lower RROR. We also have to take into consideration if the depreciation of the Euro would cause a negative impact on our cash flows
A. The main risk we face is political risk. France now has been more unstable in recent times than in a very long time. In recent times terrorism plagues the streets of France. Especially being in the Airline business, this terrorism would greatly affect the cash flows of business. Crime and corruption could also pose as major threats to the business. While the European Union has faced turmoil in the recent past, there is no denying that the possibility of countries leaving would negatively affect those who remain in the Union.
B. The threat of terrorism is a very large threat to our business and its money making capabilities. In the past terrorism has taken lace via plane, the world remembers this and as a result airlines, and traveling as a whole would be greatly affected by any type of terrorism or destructive event. If something of this magnitude were to occur, Jasper Airlines would immediately stop doing business with said country until matters are resolved. The company is in no need of doing business in high rate terrorism regions. The risk is too high.
C. In France we have recently seen what the possibilities of the turnover of power could be. In the most recent French election France elected Emmanuel Macron who is very different from the President that was before him. This could affect the businesses cash flows either a positive or negative way. In other words the lawmakers could either place heavier taxes and restrictions on the sector which would negatively affect the business or give the sector tax cuts and government subsidies because the business is good for France as a whole.
https://www.france24.com/en/20180513-deadly-terror-attacks-france-2015
A. We are exposed to exchange rate risk if the financing is with US debt. THe exchange rate risk financing in dollars and then converting the currency to Euros and eventually into GBP in order to repay our investor. These three rates are not as volatile as others, but there is a considerable amount of risk involved.
B. By using the Euro to finance the operation, the benefit will be in using the local currency. This plan would not be affected by the exchange rate. Also, if there were financing by US debt the company would be affected by the exchange rate. The company would have to conduct a discounted cash flow model for the two budgeting scenarios and look at which option is the optimal one.
C. The consultant is wrong. Inviting foreign investors into the operation would not only complicate things because they would now own a portion of the company and have a say in the operation of the company, but also equity financing historically have higher interest rates than that of debt.
As we look ahead and think about expanding into other countries outside of France, we need to analyze the long term financing opportunities we have as a company. We only plan to invest a small amount of U.S. dollar equity into this project as we expect to finance the rest with debt. As we receive credit offers from different banks we are faced with choosing between two scenarios. One being that we can obtain a fixed-rate loan in the U.S. at 8% for the life of the project and the second being we can receive a floating rate loan from a bank in France for 10%. For our shareholders that are not familiar with the term, a floating interest rate also considered a variable interest rate, is an interest rate that moves up and down with the rest of the market or an index. When considering taking this loan, we have to factor in not just the changes in France that can affect this rate but all of the changes in Europe that can have an affect on the Euro. We also need to estimate the net present value of the project for both scenarios.
A. Our financing expenses will be counted as cash outflows. We will be paying both our labor costs and and rent costs in the Euro before we convert them into U.S. dollars but the difference will be the debt payment.
B. If we use Euro financing, we will have paid our interest on debt financing before we convert our Euro cash flows to dollars. On the other hand, if we use dollar debt financing, we will have to convert the Euro cash flows into dollars before we make our debt payments.
C. We will be able to capture the difference in the cash flows that are expected through exchange rate method by using the capital budgeting method. This method allows us to insert different estimates of possible interest rates in Europe each year. So we will need to come up with a range of likely interest rates in order for us to obtain the best data. This will help us compute an estimate of our total debt payment which will then be included in our estimate of total Euro outflows.
D. We want to allow for different interest rate scenarios to make our estimates more accurate so we will have to use sensitivity analysis (in our case the Monte Carlo simulation) that will allow us derive the Net Present Value for multiple interest rate scenarios.
https://www.investopedia.com/terms/f/floatinginterestrate.asp
A. In the airline industry there are a substantial number of fees that go alongside with flying. It is such a norm in this industry that consumers expect them at this point. Charging an up front fee in order to ensure that we will profit in all regions.
For example, if a country wishes to put a tax on French airlines in order to deter consumers from flying on a international plane, the fee will ensure the airline makes a profit right off the bat. There can also be a rewards system put in place. As of now airlines are issuing their own credit cards rewarding their customers with air miles in exchange for their loyalty. In this fashion it will be beneficial for both the airline and the customers who use the loyalty program. There is also a possibility to create a stronghold in certain airports. In other words there would be certain airports which Jasper Airline flights are more abundant. This would be similar to how American Airlines has a major hub in Charlotte.
A. Jasper Airlines would be more exposed to exchange rate risk if the financing campaign is in USD. The result of this would be exchanging Euros to to USD in order to repay the borrowed foreign currency. Borrowing local currency would allow to discard exchange rate risk. This is because you would not need to go through ana FX desk in order to make payments.
B. The Euro’s rise in inflation predicts a depreciation in the currency. A depreciation in the Euro would mean that it would be even more expensive to finance an operation with USD than before.
A. There would need to be an analysis done in order to determine how many dollars would be needed in order to exchange for Euros. This would determine which rate is more profitable the American or French (European). There would also need to be a cash management system in order to manage cash flows received in either dollars, eros, or pounds. Finally, in order to reduce currency conversion costs, the company will implement netting which will optimize cash flow by reducing transaction costs.
First Leg
library(visNetwork)
visNetwork( dot = 'dinetwork{ node [shape=box];
"Zinedine Zidane" -> "Jasper International Air" [label = "$50M CHF FV"] ;
"Jasper International Air" -> "BNP Paribas" [label = "$50M CHF FV"] ;
"BNP Paribas" -> "Jasper International Air" [label = "$31.47M EUR"] ;
"BNP Paribas" -> "Bond Portfolio" [label = "$10.66M GBP"] ;
"BNP Paribas" -> "Spot FX Market" [label = "$14M EUR"] ;
"Spot FX Market" -> "BNP Paribas" [label = "$10.66M GBP"] ;
"BNP Paribas" -> "Swap Counterparty" [label = "$35.17M CHF"];
"Swap Counterparty" -> "BNP Paribas" [label ="$31.47M EUR"];
}'
) visNetwork(dot = 'dinetwork{ node [shape=box];
"Jasper International Air" -> "BNP Paribas" [label = " Libor EUR Payment"] ;
"BNP Paribas" -> "Jasper International Air" [label = " $1.418M GBP"] ;
"Jasper International Air" -> "Zinedine Zidane" [label = " $1.418M GBP"]
"Bond Portfolio" -> "BNP Paribas" [label = " $1.418M GBP"] ;
"BNP Paribas" -> "Swap Counterparty" [label = " Libor EUR Payment"];
}'
)visNetwork(dot = 'dinetwork{ node [shape=box];
"Jasper International Air" -> "BNP Paribas" [label = " $44.285M EUR"] ;
"DZ Bank" -> "Jasper International Air" [label = " $50M CHF"] ;
"Jasper International Air" -> "Zinedine Zidane" [label = "3. $50M CHF"]
"BNP Paribas" -> "Swap Counterparty" [label = "4. $44.285M EUR" ];
"Swap Counterparty" -> "BNP Paribas" [label = "5. $50M CHF"]
}'
) In order to finance our Multinational Airline Corporation we sought out a private investor in France to help us finance our company. The investor we chose is Zinedine Zidane. Zidane is regarded as one of the best soccer players the world has ever seen and he has also had tremendous success as a coach. Because of this Zidane has a very high net worth and has substantial interest in our business due to the fact that he and his teams have to travel very frequently and he supports the idea of Jasper Airlines having a more comfortable flight experience. In the pictures below we drew out the scenario of how a loan from Zidane would work and how we would have to pay him back. Zidane lent us money in Swiss Francs but wants his interest payments to be made in British pounds. To do this we first have to transfer the 50M CHF that Zidane is lending us to our French Bank which is BNP Paribas. Next BNP will give this money to the SWAP counterparty in exchange for 31.47M Euros, which will then be transferred to us. In order to obtain the coupon payments in GBP we need to use a bond portfolio and an FX desk. Through this we are able to calculate a coupon payment to Zidane of 1.418M GBP per year. Although his coupon payments are made in British Pounds, we will still need to pay back the principal in Swiss Francs.
library(rvest)## Loading required package: xml2URL <-'https://www.investing.com/currencies/gbp-chf-historical-data'
fxrates <- read_html(URL)
fx_table <- html_nodes(fxrates,'table')
fx_table2 <- html_table(fx_table)
my<-fx_table2[[1]]
str(fx_table2)## List of 11
## $ :'data.frame': 25 obs. of 6 variables:
## ..$ Date : chr [1:25] "Mar 15, 2019" "Mar 14, 2019" "Mar 13, 2019" "Mar 12, 2019" ...
## ..$ Price : num [1:25] 1.33 1.33 1.34 1.32 1.33 ...
## ..$ Open : num [1:25] 1.33 1.33 1.32 1.33 1.31 ...
## ..$ High : num [1:25] 1.33 1.34 1.34 1.34 1.33 ...
## ..$ Low : num [1:25] 1.33 1.33 1.32 1.31 1.3 ...
## ..$ Change %: chr [1:25] "-0.15%" "-0.65%" "1.64%" "-0.87%" ...
## $ :'data.frame': 1 obs. of 5 variables:
## ..$ X1: chr "Highest: 1.3426"
## ..$ X2: chr "Lowest: 1.2855"
## ..$ X3: chr "Difference: 0.0571"
## ..$ X4: chr "Average: 1.3165"
## ..$ X5: chr "Change %: 3.2003"
## $ :'data.frame': 8 obs. of 7 variables:
## ..$ X1: logi [1:8] NA NA NA NA NA NA ...
## ..$ X2: chr [1:8] "S&P 500 Futures" "S&P 500" "Nasdaq 100" "Dow 30" ...
## ..$ X3: chr [1:8] "2,817.38" "2,808.48" "7,243.01" "25,709.94" ...
## ..$ X4: num [1:8] 5.13 -2.44 -13.97 7.05 -8.51 ...
## ..$ X5: chr [1:8] "+0.18%" "-0.09%" "-0.19%" "+0.03%" ...
## ..$ X6: logi [1:8] NA NA NA NA NA NA ...
## ..$ X7: logi [1:8] NA NA NA NA NA NA ...
## $ :'data.frame': 8 obs. of 7 variables:
## ..$ X1: logi [1:8] NA NA NA NA NA NA ...
## ..$ X2: chr [1:8] "Crude Oil WTI" "Brent Oil" "Natural Gas" "Gold" ...
## ..$ X3: chr [1:8] "58.56" "67.22" "2.838" "1,294.45" ...
## ..$ X4: num [1:8] -0.05 0.05 -0.013 -0.65 0.026 0.001 2.24 0.5
## ..$ X5: chr [1:8] "-0.09%" "+0.07%" "-0.46%" "-0.05%" ...
## ..$ X6: logi [1:8] NA NA NA NA NA NA ...
## ..$ X7: logi [1:8] NA NA NA NA NA NA ...
## $ :'data.frame': 8 obs. of 7 variables:
## ..$ X1: logi [1:8] NA NA NA NA NA NA ...
## ..$ X2: chr [1:8] "SPDR S&P 500" "VelocityShares Daily 2x VIX Short Term linked to S" "Invesco QQQ Trust Series 1" "Direxion Daily Junior Gold Miners Bull 3X Shares" ...
## ..$ X3: num [1:8] 281.2 26.5 176.7 10.3 89.6 ...
## ..$ X4: num [1:8] -0.18 -0.77 -0.3 -0.9 -1.67 -0.97 -0.24 -0.61
## ..$ X5: chr [1:8] "-0.06%" "-2.82%" "-0.17%" "-8.02%" ...
## ..$ X6: logi [1:8] NA NA NA NA NA NA ...
## ..$ X7: logi [1:8] NA NA NA NA NA NA ...
## $ :'data.frame': 8 obs. of 7 variables:
## ..$ X1: logi [1:8] NA NA NA NA NA NA ...
## ..$ X2: chr [1:8] "BTC/USD" "ETH/USD" "BCH/USD" "XRP/USD" ...
## ..$ X3: chr [1:8] "3,964.4" "136.22" "132.98" "0.31305" ...
## ..$ X4: num [1:8] 4.1 1.14 -1.23 -0.00195 0.002 ...
## ..$ X5: chr [1:8] "+0.10%" "+0.84%" "-0.92%" "-0.62%" ...
## ..$ X6: logi [1:8] NA NA NA NA NA NA ...
## ..$ X7: logi [1:8] NA NA NA NA NA NA ...
## $ :'data.frame': 7 obs. of 6 variables:
## ..$ X1: logi [1:7] NA NA NA NA NA NA ...
## ..$ X2: logi [1:7] NA NA NA NA NA NA ...
## ..$ X3: chr [1:7] "EUR/USD" "GBP/USD" "USD/JPY" "AUD/USD" ...
## ..$ X4: num [1:7] 1.131 1.324 111.86 0.708 1.332 ...
## ..$ X5: chr [1:7] "Strong Buy" "Strong Sell" "Neutral" "Strong Buy" ...
## ..$ X6: logi [1:7] NA NA NA NA NA NA ...
## $ :'data.frame': 7 obs. of 6 variables:
## ..$ X1: logi [1:7] NA NA NA NA NA NA ...
## ..$ X2: logi [1:7] NA NA NA NA NA NA ...
## ..$ X3: chr [1:7] "Gold" "Silver" "Copper" "Crude Oil WTI" ...
## ..$ X4: logi [1:7] NA NA NA NA NA NA ...
## ..$ X5: logi [1:7] NA NA NA NA NA NA ...
## ..$ X6: logi [1:7] NA NA NA NA NA NA ...
## $ :'data.frame': 7 obs. of 6 variables:
## ..$ X1: logi [1:7] NA NA NA NA NA NA ...
## ..$ X2: logi [1:7] NA NA NA NA NA NA ...
## ..$ X3: chr [1:7] "Dow 30" "Nasdaq 100" "S&P 500" "DAX" ...
## ..$ X4: logi [1:7] NA NA NA NA NA NA ...
## ..$ X5: logi [1:7] NA NA NA NA NA NA ...
## ..$ X6: logi [1:7] NA NA NA NA NA NA ...
## $ :'data.frame': 8 obs. of 6 variables:
## ..$ X1: logi [1:8] NA NA NA NA NA NA ...
## ..$ X2: logi [1:8] NA NA NA NA NA NA ...
## ..$ X3: chr [1:8] "BTC/USD" "ETH/USD" "BCH/USD" "IOTA/USD" ...
## ..$ X4: logi [1:8] NA NA NA NA NA NA ...
## ..$ X5: logi [1:8] NA NA NA NA NA NA ...
## ..$ X6: logi [1:8] NA NA NA NA NA NA ...
## $ :'data.frame': 1 obs. of 6 variables:
## ..$ : logi NA
## ..$ Name : chr "GBP/CHF"
## ..$ Price : num 1.33
## ..$ Chg. : num -4e-04
## ..$ Chg. %: chr "-0.03%"
## ..$ : logi NAmy <- my[,1 | 4]
my <- my[,1:2]
my## Date Price
## 1 Mar 15, 2019 1.3286
## 2 Mar 14, 2019 1.3305
## 3 Mar 13, 2019 1.3393
## 4 Mar 12, 2019 1.3177
## 5 Mar 11, 2019 1.3292
## 6 Mar 10, 2019 1.3090
## 7 Mar 08, 2019 1.3122
## 8 Mar 07, 2019 1.3233
## 9 Mar 06, 2019 1.3236
## 10 Mar 05, 2019 1.3234
## 11 Mar 04, 2019 1.3176
## 12 Mar 03, 2019 1.3220
## 13 Mar 01, 2019 1.3191
## 14 Feb 28, 2019 1.3240
## 15 Feb 27, 2019 1.3329
## 16 Feb 26, 2019 1.3249
## 17 Feb 25, 2019 1.3108
## 18 Feb 24, 2019 1.3063
## 19 Feb 22, 2019 1.3060
## 20 Feb 21, 2019 1.3064
## 21 Feb 20, 2019 1.3062
## 22 Feb 19, 2019 1.3079
## 23 Feb 18, 2019 1.2980
## 24 Feb 17, 2019 1.2965
## 25 Feb 15, 2019 1.2959a <-mean(my$Price)
s<-sd(my$Price)
n=27 #used amount of entries i scraped
error <- qnorm(0.975)*s/sqrt(n)
left <- a-(error*2)
right <- a+(error*2)
left## [1] 1.307508right## [1] 1.325396low<-1.418*left
low## [1] 1.854047high<-1.418*right
high## [1] 1.879411library(FinCal)
#This is using the low of our CI for GBP to CHK
irr<-irr(cf = c(-50, 1.795546,1.795546,1.795546,1.795546,1.795546,1.795546,
1.795546,1.795546,1.795546,1.795546, 50))
irr## [1] 0.03316171# Here we will use the high of our CI
irr2<-irr(cf = c(-50, 1.819104,1.819104,1.819104,1.819104,1.819104,1.819104,
1.819104,1.819104,1.819104,1.819104, 50))
irr2## [1] 0.03359523Term and Conditions - December 12, 2018
Borrower: Jasper Airlines Facilities: 50,000,000 CHF Agent: BNP Paribas Lender(s): Zinedine Zidane Use of Proceeds: To allow Jasper Airlines to expand their operation into other countries outside of Europe. Their hope is to expand their reach into Southeast Asia (Vietnam and Sri Lanka) as well as a stronger grasp in the Eastern Seaboard of the Americas. This will allow for more frequent flights at more competitive fares. This will also allow for Jasper Airlines to buy newer Boeing 737 planes.
Term: 10 years from closing
Pricing: 7.52% in GBP; interest will be payable annually
Colletoral: 1st priority lien on Jasper Airline Assets
Periodic Field Exams: A representative of Zinedine Zidane or he himself should he choose will be permitted to conduct a field exam every six months or as they should require. Jasper Airlines prides themselves on being fully transparent to their investors.
Closing Fee: 1%
Financial and Other Reporting: Customary. Jasper Airlines will provide monthly, quarterly, semi-annual, and annual reports.
Closing: December 31, 2018
Conditions Precedent: Completion of business and legal due diligence of financial matters, materials contracts, litigation, tax matters, regulatory laws, insurance, environmental issues, government regulations, and disclosure schedule as it pertains to the capital structure at closing. Meeting management and equity holders, satisfactory report of field exam, receipt of loan documents and receipt of Investment Committee approval as it pertains to financing of this type.
Sincerely,
Zidane Holdings Zinedine Zidane Zinedine Zidane Chief Executive Officer (CEO)
Agreed & Accepted Jasper Airlines
Kyle R. Matus Chief Executive Officer (CEO)
Michael Corteo Chief Operating Officer (COO)
Matt Volpe Chief Financial Officer (CFO)