Essays on Exxon

Introduction

David Rockefeller is among the richest people in the world, but his wealth is connected to the family empire that was established by his parents. He is the last born in the family, and his success started when he was working as the chair of the Manhattan Chase Bank. His family’s investment in the fossil industry has immensely contributed to the growth of the Rockefeller Empire. Although he has managed to amass significant amounts of money, his organization has been criticized for engaging in unethical practices by influencing the country’s policy making process. A good example is ...

A critical Evaluation of the response to Deepwater Horizon oil spill

Introduction The oil industry plays a significant role in providing the oil used as fuel in other major industries that drive the economy. Due diligence and utmost care are among the guiding principles that regulate the industry as any problem may have adverse effects on the environment as well as human and animal life. However, due to unavoidable circumstances, the oil spillage sometimes occurs with devastating results on the seabed and the animal life that lives under the waters. The Deepwater Horizon is one of the worst accidents that happened in the oil production and processing industry. It happened ...

The Exxon Valdez oil spill occurred on the 24th of March 1989 in Prince William Sound in Alaska. The Exxon Valdez an oil tanker was on route to Long Beach, California when it hit the Bligh Reef in Prince William Sound. The accident caused between 11-38 million gallons of crude oil to spill into the ocean in the next few days. Response to the disaster was slow due to Prince William Sound only being reachable by boat, helicopter, or plane. The identified causes of the spill are (1) The failure of Exxon to oversee the master, along with ensuring ...

Imperial Oil, founded in 1880 is a giant petroleum producing company, with its headquarters located in Calgary, Canada. It is the second largest integrated petroleum company in Canada and has registered a phenomenal growth since its inception. Its operations consist of exploring and producing oil, manufacturing and distributing petroleum products for energy sources, producing chemicals for industrial and domestic use through innovative and sustainable technology. ( Annual report, 2016) reports a cash generation of $22 bn from operations only during 2010-2015. Its performance can be evaluated from the growing dividends paid to its shareholders in last 21 consecutive years. Imperial ...

Introduction

Climate change is among the significant factors impacting ecological diversity on a worldwide scale. The growth of industries and the increasing human population globally have resulted in a rise in the volume of greenhouse gasses, which scientists have argued are the greatest contributors to the menace. The Florida Keys is one of the ecological treasures of the U.S. that continues to be impacted negatively by climate change and anthropogenic activities. This ecological treasure, which is located at the tip of the state of Florida, comprises about 1,700 islands that stretch for more than 200 miles to the west ...

EXECUTIVE SUMMARY

Ratio analysis is one of the most common methods of analyzing a company. They are simple to calculate needing only public information from financial statements. The purpose is to use past relationships of financial accounts to predict future results. Perhaps the most important ratios involve operating income. ROE, gross profit margin, operating margin, and net profit margin give information about how the company achieved results in the past. Of these, operating margin is the most important. This ratio demonstrates a company’s ability to generate income from normal business operations. Look for at least a 10% margin. Extraordinary items ...

1. The organization is based on an ethical culture where the activities and performance of the employees are according to a written code of conduct. The culture influences the employees to work effectively and in the right manner such as transparency and honesty. Some organizations have different cultures that may not lead to positive and effective values. The only recommended change in the ethical culture would be the respect and fair treatment of people from ethnic groups. 2. To evaluate if a firm is one of ‘the good guys’ or not is often through assumption or the reputation of ...

Fall 2011

Homework Assignment #6

In the first step of the analysis, two stocks from the DIJA Index were chosen. In order to obtain a low correlation coefficient ( less than 0.5) the stocks from different market segments were chosen: WalMart and Exxon. According to the monthly data from the last two years, the average returns of WalMart and Exxon are -0.58% and -0.92% , while the standard deviations are 3.97% and 5.11% respectively. The correlation between the two assets is 0.49, which is consistent with the problem requirements (See Excel file for detailed calculations). As a second step, a portfolio with the two selected ...

Question 1

You own a $250,000 house and pay $1,000 for fire insurance. What is the exercise value of the fire insurance put option if the house does not burn (and you have paid no claim)? What is the realized return on your investment in fire insurance?

Exercise value for a put option = Put strike price – Current price of the underlying asset

= 0 – 1000 = - $1000

Question 2

What are the exercise values and time premiums of the following option: Exxon Mobile call with a strike price of $35 and a market value of $1.80. Exxon Mobil stock is selling for $33.40. ...