Company Profile: American Airlines, Inc. (AA) Is A US-based Airline and Also The Largest Airline in The

Company Profile
American Airlines, Inc. (AA) is a US-based airline and also the largest airline in the
world in terms of total passengers-miles transported and fleet size, and the second-largest
airline in the world (behind Air France-KLM) in terms of total operating revenues. A
wholly owned subsidiary of the AMR Corporation, the airline is headquartered in Fort
Worth, Texas, adjacent to the Dallas/Fort Worth International Airport. American operates
scheduled flights throughout the United States, as well as flights to Canada, Latin
America, the Caribbean, Western Europe, Japan, China, and India. The Chairman,
President, and CEO of AA are Gerard Arpey. In 2005, the airline flew more than 138
billion revenue passenger miles (RPMs).
Competitors
DAL = Delta Air Lines Inc.
NWA = Northwest Airlines Corp.
UAUA = UAL Corporation
Past 3years Income Statement

Annual Data
All numbers in thousands
PERIOD ENDING
31-Dec-07
31-Dec-06
31-Dec-05
Total Revenue
22,935,000
22,563,000
20,712,000
Cost of Revenue
16,900,000
16,583,000
15,719,000
6,035,000
5,980,000
4,993,000
3,868,000
3,763,000
3,922,000
1,202,000
1,157,000
1,164,000
--
965,000
1,060,000
(93,000)
Gross Profit
Operating Expenses
Research Development
Selling General and Administrative
Non Recurring
Others
Total Operating Expenses
Operating Income or Loss
Income from Continuing Operations

Total Other Income/Expenses Net
433,000
172,000
124,000
1,398,000
1,232,000
31,000
Interest Expense
894,000
1,001,000
892,000
Income Before Tax
504,000
231,000
(861,000)
Income Tax Expense
Minority Interest
504,000
231,000
(861,000)
Earnings Before Interest And Taxes
Net Income From Continuing Ops
Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items
Net Income
504,000
Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares
231,000
(861,000)
$504,000
$231,000
($861,000)
Past 3years Balance Sheet

Annual Data
PERIOD ENDING
31-Dec-07 31-Dec-06
31-Dec-05
Assets
Current Assets
Cash And Cash Equivalents
576,000
589,000
648,000
Short Term Investments
4,803,000
4,594,000
3,676,000
Net Receivables
1,027,000
988,000
991,000
Inventory
601,000
506,000
515,000
Other Current Assets
222,000
225,000
334,000
7,229,000
6,902,000
6,164,000
Total Current Assets

Long Term Investments
Property Plant and Equipment
17,153,000 17,763,000 18,546,000
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges
Total Assets
1,156,000
1,167,000
1,194,000
3,033,000
3,313,000
3,591,000
28,571,000 29,145,000 29,495,000
Liabilities
Current Liabilities
Accounts Payable
7,434,000
7,156,000
7,081,000
Short/Current Long Term Debt

Other Current Liabilities
Total Current Liabilities
1,049,000
1,349,000
1,239,000
8,483,000
8,505,000
8,320,000
Long Term Debt
10,093,000 12,041,000 13,456,000
Other Liabilities
7,018,000
8,833,000
8,776,000
320,000
372,000
421,000
Minority Interest
Negative Goodwill
Deferred Long Term Liability Charges
Total Liabilities
25,914,000 29,751,000 30,973,000
Stockholders' Equity
Misc Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock
255,000
228,000
195,000
Retained Earnings
(1,390,000) (1,894,000) (2,173,000)
Treasury Stock
(367,000)
(367,000)
(779,000)
Capital Surplus
3,489,000
2,718,000
2,258,000
670,000
(1,291,000)
(979,000)
2,657,000
(606,000)
(1,478,000)
Other Stockholder Equity
Total Stockholder Equity
Net Tangible Assets
$1,501,000 ($1,773,000) ($2,672,000)
Past 3years Cash Flow

Annual Data
PERIOD ENDING
Net Income
31-Dec-07
31-Dec-06
31-Dec-05
504,000
231,000
(861,000)
Operating Activities, Cash Flows Provided By or Used In
Depreciation
1,202,000
1,157,000
1,164,000
Adjustments To Net Income
(42,000)
101,000
30,000
Changes In Accounts Receivables
(41,000)
3,000
(156,000)
Changes In Liabilities
480,000
420,000
879,000
Changes In Inventories
(128,000)
(7,000)
(59,000)
Changes In Other Operating Activities
(40,000)
34,000
27,000
1,935,000
1,939,000
1,024,000
Total Cash Flow From Operating Activities
Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures
(714,000)
(530,000)
(681,000)
Investments
207,000
(918,000)
(867,000)
Other Cash flows from Investing Activities
273,000
83,000
9,000
(234,000)
(1,365,000)
(1,539,000)
Total Cash Flows From Investing Activities
Financing Activities, Cash Flows Provided By or Used In

Dividends Paid
Sale Purchase of Stock
Net Borrowings
Other Cash Flows from Financing Activities
Total Cash Flows From Financing Activities
587,000
630,000
279,000
(2,321,000)
(1,366,000)
254,000
59,000
145,000
(1,675,000)
(591,000)
533,000
$26,000
($17,000)
$18,000
Effect Of Exchange Rate Changes
Change In Cash and Cash Equivalents
Summary of 3years Cash Flow

Cash flow measures the actual condition of the company. The net income of
American Airline in year 2007 increased approximately twice from the year 2006. In the
operating activities their inventories and liabilities was increased. After that American
Airline had a huge cash inflow from the operating activities.
In the investing activities, a huge amount of cash was outflow, because their net
borrowing increased.
At the cash flow of year 2007, American Airline has little amount of cash and
cash equivalents.
Option Chain Data For Various Expiraton Dates

Apr 08
Option Chain for AMR Corp. (AMR)

Calls
Last Chg Bid Ask Vol Open Int Strike
@AMRDI 2.50
4.10 4.30
40
6.00
Puts
Last Chg Bid Ask Vol Open Int
@AMRPI
0.05
0.12 -0.03
0.10
1717
@AMRDJ 3.00
3.10 3.30
548
7.00
@AMRPJ
0.10
10
1424
@AMRDK 2.25
0.25 2.20 2.30
90
1081
8.00
@AMRPK 0.15
0.10 0.15
35
2313
@AMRDL 1.40
0.15 1.35 1.50 294
3019
9.00
@AMRPL 0.30 -0.05 0.25 0.30
27
1522
@AMRDB 0.70
0.05 0.70 0.80 424
7518
10.00 @AMRPB 0.60 -0.05 0.55 0.65 1300
2388
@AMRDM 0.35
0.05 0.30 0.40 131
4688
11.00 @AMRPM 1.25 -0.50 1.15 1.25 760
856
0.10 0.20
97
4255
12.00 @AMRPN 2.05 -0.50 1.95 2.05
922
@AMRDO 0.10
0.05 0.10
1342
13.00 @AMRPO 3.10
2.85 3.00
1348
@AMRDP 0.10
0.10
5748
14.00 @AMRPP 5.04
3.80 4.10
1042
@AMRDC 0.05
May 08
0.10
1632
15.00 @AMRPC 5.50
4.80 5.00
139
@AMRDN 0.15

Calls
@AMREI 4.10
4.10 4.40
65
6.00
@AMREJ 3.30
0.10 3.20 3.50
569
@AMREK 2.675 0.275 2.50 2.65
66
@AMREL 1.90
24
Puts
@AMRQI
0.20
0.10 0.20
733
7.00
@AMRQJ
0.30
0.20 0.30
1145
7.50
@AMRQU
1408
8.00
@AMRQK 0.45 -0.05 0.35 0.45
10
2301
2851
9.00
@AMRQL 0.70 -0.18 0.65 0.75 250
2185
@AMREB 1.25 -0.05 1.25 1.35 1109
6280
10.00 @AMRQB 1.30 -0.05 1.10 1.20 1021
4938
@AMREM 0.90
28
10615
11.00 @AMRQM 2.00
9226
@AMREV 0.50 -0.05 0.45 0.55 125
8950
12.50 @AMRQV 2.80 -0.30 2.80 2.90 110
4244
@AMREU
0.15 1.80 1.95
-
0.85 0.95
1.65 1.80
@AMREP 0.25 -0.10 0.25 0.35
23
2118
14.00 @AMRQP 4.20 -0.20 4.00 4.30
93
1412
@AMREC 0.20
15
14103
15.00 @AMRQC 5.10 -0.30 4.90 5.20
56
8271
0.15 0.25
Aug 08

Calls
Last
@AMRHI
4.60
@AMRHJ
@AMRHU
Chg
Bid
Ask
Vol
Open Int
Strike
Puts
Last
Chg
Bid
Ask
Vol
4.60 5.00
103
6.00
@AMRTI
0.65
-0.05 0.60 0.70
60
3.70
4.00 4.20
319
7.00
@AMRTJ
0.95
0.85 0.95
3.60
3.60 3.80
144
7.50
@AMRTU
1.15
1.00 1.10
@AMRHK
3.30
0.10 3.30 3.50
273
8.00
@AMRTK
1.25
-0.15 1.15 1.25
60
@AMRHL
2.55
2.70 2.80
701
9.00
@AMRTL
1.55
-0.35 1.55 1.65
@AMRHB
2.15
2.20 2.35
21
1827
10.00
@AMRTB
2.15
-0.15 2.00 2.10
@AMRHM
1.80
0.05
1.75 1.90
33
428
11.00
@AMRTM 2.85
2.55 2.70
@AMRHN
1.55
0.15
1.40 1.55
869
12.00
@AMRTN
3.20
-0.20 3.20 3.30
@AMRHV
1.30
0.05
1.25 1.40
552
12.50
@AMRTV
3.60
-0.43 3.50 3.70
20
@AMRHO
1.15
1.10 1.25
696
13.00
@AMRTO
4.41
3.90 4.00
@AMRHP
0.95
0.05
0.85 1.00
10
1406
14.00
@AMRTP
5.00
4.60 4.80
@AMRHC
0.70
-0.05 0.70 0.80
70
2162
15.00
@AMRTC
5.90
5.40 5.60
Nov 08

Calls
Puts
@AMRKI 4.20
5.10 5.30
30
6.00
@AMRWI
1.20
0.95 1.05
91
@AMRKJ 4.00
4.40 4.70
35
7.00
@AMRWJ
1.45
1.25 1.40
326
@AMRKK 3.50
3.80 4.00
54
8.00
@AMRWK 1.90
1.65 1.80
105
@AMRKL 3.30
3.30 3.50
377
9.00
@AMRWL 2.20 -0.55 2.10 2.20
58
196
@AMRKB 2.90
0.10 2.85 3.00
10
483
10.00 @AMRWB 3.01
2.60 2.75
420
@AMRKM 2.30
2.35 2.55
1021
11.00 @AMRWM 3.60
3.10 3.30
190
@AMRKN 2.05 0.05 2.00 2.15
40
412
12.00 @AMRWN 4.30
3.70 3.90
222
@AMRKO 1.75 -0.15 1.70 1.85
1142
13.00 @AMRWO 4.90
4.40 4.60
140
@AMRKC 1.25 0.05 1.15 1.30
20
147
15.00 @AMRWC 6.04 -0.46 5.80 6.00
62
Jan 09

Calls
@VMRAU 4.70
Puts
4.40 4.60
367
7.50
10725
@VMRAB 3.10 -0.20 3.10 3.30
27
5213
10.00 @VMRMB 3.13
2.85 3.10
44613
7826
15.00 @VMRMC 6.53
6.00 6.30
31168
@VMRAC 1.35
1.40 1.55
@VMRMU 1.75 -0.20 1.70 1.85
Jan 10

Calls
Puts
@WARAU 5.00
5.20 5.60
20
7.50 @WARMU 3.20
2.45 2.75
1493
@WARAB 4.00
4.20 4.50
1221
10.00 @WARMB 4.30
4.10 4.20
2181
@WARAC 2.60
2.70 2.95
3769
15.00 @WARMC 7.30
7.10 7.50
8461
Ratios Analysis for 3years

Annual Financial Ratios
Period Ending:
12/31/2007
12/31/2006
12/31/2005
Liquidity Ratios
Current Ratio
85%
81%
74%
Quick Ratio
76%
73%
64%
Cash Ratio
63%
61%
52%
3,816%
4,459%
4,022%
26%
27%
24%
Operating Margin
4%
5%
-0%
Pre-Tax Margin
2%
1%
-4%
Inventory Turnover
Profitability Ratios
Gross Margin
Profit Margin
2%
1%
-4%
Pre-Tax ROE
19%
-38%
58%
After Tax ROE
19%
-38%
58%
Key Ratios & Statistics

Price & Volume
Recent Price $
52 Week High $
52 Week Low $
Avg. Daily Vol. (Mil) (RTMA)
Beta
Share Related Items
Mkt. Cap. (Mil) $
Shares Out (Mil)
Float (Mil)
Dividend Information
Yield %
Annual Dividend
Payout Ratio (TTM) %
Financial Strength
Quick Ratio (MRQ)
Current Ratio (MRQ)
LT Debt/Equity (MRQ)
Total Debt/Equity (MRQ)
9.85
34.00
8.10
226.242
2.89
2,456.695
249.411
249.000
N/A
0.00
0.00
.78
.85
379.87
419.35
Valuation Ratios
Price/Earnings (TTM)
Price/Sales (TTM)
Price/Book (MRQ)
Price/Cash Flow (TTM)
Per Share Data
Earnings (TTM) $
Sales (TTM) $
Book Value (MRQ) $
Cash Flow (TTM) $
Cash (MRQ) $
Mgmt Effectiveness
Return on Equity (TTM)
Return on Assets (TTM)
Return on Investment (TTM)
Profitability
Gross Margin (TTM) %
Operating Margin (TTM) %
Profit Margin (TTM) %
5.77
.11
.93
1.44
1.71
80.05
10.65
5.96
18.18
2.48
1.75
2.48
21.83
4.21
2.20
Mil = Millions RTMA = Rolling Three Month Average

TTM = Trailing Twelve Months MRQ = Most Recent Quarter
Asterisk (*) indicates numbers are derived from Earnings Announcements
Pricing and volume data as of 04/01/2008
Summary of Ratios Analysis for 3years Financial

Trends
Summary for NASDAQ analyst information
From consensus recommendation, we can see that the most of the analysts suggest
that hold the stock. Out of the fourteen analysts, four analysts suggest to hold the stock.
From the twelve months price ranges, we see that the analysts the price of the
stock may move upward from $10.16 to $ 14.
If we look into the earnings surprise, the earning per share (EPS) was moving
downward in December 2007. But the reported EPS is less than the estimated EPS, the
company was minimize its lose. American Airlines reported EPA is greater that
reported EPS most of the time, which indicates it is performing well.
Out of 14 analysts twelve have changed their opinion about the company. Eleven
analysts change their opinion about stock price which the price of the stock will
downward.
From earning growth, we can see that the industrys earnings growth is negative
which indicates that Airline industry is not performing well comparative to other
industry. It is also a negative impression about the industry. But American Airline may
do well in this industry because of its reputation and large air-crafts.
From the P/E ratio, we find that American Airlines P/E ratio is nil. Because, it
does not give any dividend.
From the consensus earning forecasts, we see that fourteen analysts forecast the
mean EPS for the year 2008 will be -3.36 and twelve analysts forecast the mean EPS for
the year 2009 will be -1.13.
We can see in the technical chart the price of the stock has a bearish trend before
the January 2008. But after the April 2008, the price may go up because in every summer
it performs well and makes a huge profit.
The Actual Value of Call and Put Options of AMR

Aug 08
Feb 08 | Mar 08 | Apr 08 | May 08 | Aug 08 | Nov 08 | Jan 09 | Jan 10 | All

Calls
@AMRHI 4.60
4.60 5.00
@AMRHK 3.30
0.10 3.30 3.50
@AMRHB 2.15
2.20 2.35
103
6.00
Puts
@AMRTI

0.65 -0.05 0.60 0.70
60
1034
273
8.00 @AMRTK 1.25 -0.15 1.15 1.25
60
1371
21
1827
10.00 @AMRTB 2.15 -0.15 2.00 2.10
5471
0.05 0.85 1.00
10
1406
14.00 @AMRTP 5.00
4.60 4.80
707
@AMRHC 0.70 -0.05 0.70 0.80
70
2162
15.00 @AMRTC 5.90
5.40 5.60
835
@AMRHP 0.95
Under The Black& Schole Model, the actual Call and put prices of Aug 08 are given
below for the highest open interests.
S = $10.16
X = $15
r = 5%
V = 2 = 39.32
T = 7months = .53 years
ln s + ( r + 0.5 2 )T
x
d1 =
T
ln 10.16 + ( 0.05 + (0.5 .3932 ) 0.53

15
=
0.6271 0.53
= 0.3896 + 0.1307
0.4565
= 0.5671
d2 = d1 T
= 0.5671 0.4565
= 1.0236
N (d1 ) = N (0.5671)
= N (0.56) 0.71 N (0.56) N (0.57)
= 0.2877 0.71( 0.2877 0.2848 )
= 0.2856
N (d2 ) = N (1.0236)
= N (1.02) 0.36 N (1.02) N (1.03)
= 0.1539 0.36 ( 0.1539 0.1515 )
= 0.1530
C = SN (d1 ) Xe rT N (d2 )
= 10.16 N (0.5671) 15 e0.050.53 N (1.0236)
= 10.16 0.2856 15 0.9738 0.1530
= 2.902 2.235
= 0.667
N (d1 ) = 1 N (d1 )
= 1 N (0.5671)
= 1 0.2856
= 0.7144
N ( d 2 ) = 1 N (d 2 )
= 1 N (1.0236)
= 1 0.1530
= 0.8470
P = Xe rT N (d2 ) SN (d1 )
= 15 e0.050.53 0.8470 10.16 0.7144
= 12.37 7.14
= 5.23
Under The Black& Schole Model, the actual Call and put prices of Aug 08 are given
below for the 2nd highest open interests.
S = $10.16
X = $10
r = 5%
V = 2 = 39.3230
T = 7months = 0.58 years
N (d1 ) = N (0.3211)
= N (0.32) + 0.11 N (0.33) N (0.32)
= 0.6255 + 0.11( 0.6293 0.6255 )
= 0.6259
N (d2 ) = N (0.1354)
= N (0.13) 0.54 N (0.13) N (0.12)
= 0.4483 0.54 ( 0.4483 0.4443 )
= 0.4461
ln s + ( r + 0.5 2 )T
x
d1 =
T
ln 10.16 + ( 0.05 + (0.5 .3932 ) 0.58

10
=
0.6271 0.58
= 0.0159 + 0.1307
0.4565
= 0.3211
d2 = d1 T
= 0.3211 0.4565
= 0.1354
C = SN (d1 ) Xe rT N (d2 )
= 10.16 N (0.3211) 10 e0.050.53 N (0.1354)
= 10.16 0.6259 10 0.9738 0.4461
= 6.359 4.344
= 2.015
N (d1 ) = 1 N (d1 )
= 1 N (0.3211)
= 1 0.6259
= 0.3741
N ( d 2 ) = 1 N (d 2 )
= 1 N (0.1254)
= 1 0.4461
= 0.5539
P = Xe rT N (d2 ) SN (d1 )
= 10 e0.050.53 0.5539 10.16 0.3741
= 5.394 3.801
= 1.59
Nov 08
Under The Black& Schole Model, the actual Call and put prices of Nov 08 are given
S = $10.16
X = $13
r = 5%
V = 2 = 39.3204

ln s + ( r + 0.5 2 )T
d1 = x
T
ln 10.16 + ( 0.05 + (0.5.3932 ) 0.83

13
=
0.6271 0.83
= 0.2465 + 0.2047
0.5713
= 0.0732
d2 = d1 T
= 0.0732 0.5713
= 0.5445
N (d1 ) = N (0.0732)
= N (0.07) 0.32 N (0.07) N (0.08)
= 0.5279 0.32 ( 0.5279 0.5319 )

= 0.5292
N (d2 ) = N (0.5445)
= N (0.54) 0.54 N (0.54) N (0.55)
= 0.2946 0.54 ( 0.2946 0.2877 )
= 0.2909
C = SN (d1 ) Xe rT N (d2 )
= 10.16 N (0.0732) 13 e0.050.83 N (0.5445)
= 10.16 0.5292 13 0.9593 0.2909
= 5.376 3.628
= 1.748
N (d1 ) = 1 N (d1 )
= 1 N (0.0732)
= 1 0.5292
= 0.4708
N ( d 2 ) = 1 N (d 2 )
= 1 N (0.5445)
= 1 0.2909
= 0.7091
P = Xe rT N (d2 ) SN (d1 )
= 13 e0.050.83 0.7091 10.16 0.4708
= 8.84 4.78
= 4.06
Under The Black& Schole Model, the actual Call and put prices of Nov 08 are given
S = $10.16
X = $11
r = 5%
V = 2 = 39.3230
ln s + ( r + 0.5 2 )T
x
d1 =
T
ln 10.16 + ( 0.05 + (0.5 .3932 ) 0.83

11
=
0.6271 0.83
= 0.079 + 0.2047
0.5713
= 0.2198
d2 = d1 T
= 0.2198 0.5713
= 0.3515
N (d1 ) = N (0.2198)
= N (0.21) + 0.98 N (0.22) N (0.21)
= 0.5832 + 0.98 ( 0.5871 0.5832 )
= 0.5870
N (d2 ) = N (0.3515)
= N (0.35) 0.15 N (0.35) N (0.36)
= 0.3632 0.15 ( 0.3632 0.3594 )
= 0.3526
C = SN (d1 ) Xe rT N (d2 )
= 10.16 N (0.2198) 11 e0.050.83 N (0.3515)
= 10.16 0.5870 11 0.9593 0.3526
= 5.95 3.72
= 2.23
N (d1 ) = 1 N (d1 )
= 1 N (0.2198)
= 1 0.5870
= 0.4130
N ( d 2 ) = 1 N (d 2 )
= 1 N (0.3515)
= 1 0.3526
= 0.5474
P = Xe rT N (d2 ) SN (d1 )
= 11 e0.050.83 0.5474 10.16 0.4130
= 5.777 4.196
= 1.58
Jan 09
Under The Black& Schole Model, the actual Call and put prices of Jan 09 are given
S = $10.16
X = $15
r = 5%
V = 2 = 39.32
T = 12months = 1years
ln s + ( r + 0.5 2 )T
x
d1 =
T
ln 10.16 + ( 0.05 + (0.5 .3932 ) 1

15
=
0.6271 1
= 0.3896 + 0.2466
0.6271
= 0.2280
d2 = d1 T
= 0.2280 0.6271
= 0.8551
N (d1 ) = N (0.2280)
= N (0.22) 0.80 N (0.22) N (0.23)
= 0.4129 0.80 ( 0.4129 0.4090 )
= 0.4098
N (d2 ) = N (0.8551)
= N (0.85) 0.51 N (0.85) N (0.86)
= 0.1977 0.51( 0.1977 0.1949 )

= 0.1963
C = SN (d1 ) Xe rT N (d2 )
= 10.16 N (0.2280) 15 e0.051 N (0.8551)
= 10.16 0.4098 15 0.9512 0.1963
= 4.1636 2.8
= 1.3636
N (d1 ) = 1 N (d1 )
= 1 N (0.2280)
= 1 0.4098
= 0.5902
N ( d 2 ) = 1 N (d 2 )
= 1 N (0.8551)
= 1 0.1963
= 0.8037
P = Xe rT N (d2 ) SN (d1 )
= 15 e0.051 0.8037 10.16 0.5902
= 11.47 5.996
= 5.47
S = $10.16
X = $10
r = 5%
V = 2 = 39.32
T = 12months = 1years
ln s + ( r + 0.5 2 )T
x
d1 =
T
ln 10.16 + ( 0.05 + (0.5 .3932 ) 1

10
=
0.6271 1
= 0.0159 + 0.2466
0.6271
= 0.4186
d2 = d1 T
= 0.4186 0.6271
= 0.2085
N (d1 ) = N (0.4186)
= N (0.41) + 0.86 N (0.42) N (0.41)
= 0.6591 + 0.86 ( 0.6628 0.6591)
= 0.6623
N (d2 ) = N (0.2085)
= N (0.20) 0.85 N (0.20) N (0.21)
= 0.4207 0.85 ( 0.4207 0.4168 )

= 0.4174
C = SN (d1 ) Xe rT N (d2 )
= 10.16 N (0.4186) 10 e0.051 N (0.2085)
= 10.16 0.6623 10 0.9512 0.4174
= 6.73 3.97
= 2.76
N (d1 ) = 1 N (d1 )
= 1 N (0.4186)
= 1 0.6623
= 0.3377
N ( d 2 ) = 1 N (d 2 )
= 1 N (0.2085)
= 1 0.4174
= 0.5826
P = Xe rT N (d2 ) SN (d1 )
= 10 e0.051 0.5826 10.16 0.3377
= 5.54 3.43
= 2.11
Jan 10
S = $10.16
X = $15
r = 5%
V = 2 = 39.32
T = 24months = 2 years
ln s + ( r + 0.5 2 )T
x
d1 =
T
ln 10.16 + ( 0.05 + (0.5 .3932 ) 2

15
=
0.6271 2
= 0.3896 + 0.4932
0.8869
= 0.1168
d2 = d1 T
= 0.1168 0.8869
= 0.7701
N (d1 ) = N (0.1168)
= N (0.11) + 0.68 N (0.12) N (0.11)
= 0.5438 + 0.68 ( 0.5478 0.5438 )
= 0.5410
N (d2 ) = N (0.7701)
= N (0.77) 0.01 N (0.77) N (0.78)
= 0.2206 0.01( 0.2206 0.2177 )
= 0.2206
C = SN (d1 ) Xe rT N (d2 )
= 10.16 N (0.5740) 10 e0.052 N (0.3129)
= 10.16 0.5410 15 0.9048 0.2206
= 5.497 3.994
= 1.503
N (d1 ) = 1 N (d1 )
= 1 N (0.5740)
= 1 0.5410
= 0.4590
N ( d 2 ) = 1 N (d 2 )
= 1 N (0.3129)
= 1 0.2206
= 0.7794
P = Xe rT N (d2 ) SN (d1 )
= 15 e0.052 0.7794 10.16 0.4590
= 10.58 4.66
= 5.92
S = $10.16
X = $10
r = 5%
V = 2 = 39.3230
T = 24months = 2 years
ln s + ( r + 0.5 2 )T
x
d1 =
T
ln 10.16 + ( 0.05 + (0.5 .3932 ) 2

10
=
0.6271 2
= 0.0159 + 0.4932
0.8869
= 0.5740
d2 = d1 T
= 0.5740 0.8869
= 0.3129
N (d1 ) = N (0.5740)
= N (0.57) + 0.40 N (0.58) N (0.57)
= 0.7157 + 0.40 ( 0.7190 0.7157 )
= 0.7170
N (d2 ) = N (0.3129)
= N (0.31) 0.29 N (0.31) N (0.32)
= 0.3783 0.29 ( 0.3783 0.3745 )
= 0.3771
C = SN (d1 ) Xe rT N (d2 )
= 10.16 N (0.5740) 10 e0.052 N (0.3129)
= 10.16 0.7170 10 0.9048 0.3771
= 7.2947 3.412
= 3.9827
N (d1 ) = 1 N (d1 )
= 1 N (0.5740)
= 1 0.7175
= 0.2825
N ( d 2 ) = 1 N (d 2 )
= 1 N (0.3129)
= 1 0.3771
= 0.5229
P = Xe rT N (d2 ) SN (d1 )
= 10 e0.052 0.5229 10.16 0.2825
= 4.73 2.97
= 1.76
Comparion Between Real and Actual Value

Current and Future Stock Price
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Past 3years Income Statement

All numbers in thousands

Total Operating Expenses

Operating Income or Loss

Income from Continuing Operations

Income Before Tax

Income Tax Expense

Earnings Before Interest And Taxes

Net Income From Continuing Ops

Effect Of Accounting Changes

Preferred Stock And Other Adjustments

Net Income Applicable To Common Shares

Past 3years Balance Sheet

All numbers in thousands

Short Term Investments

Other Current Assets

Total Current Assets

17,153,000 17,763,000 18,546,000

28,571,000 29,145,000 29,495,000

Short/Current Long Term Debt

Total Current Liabilities

Long Term Debt

10,093,000 12,041,000 13,456,000

Deferred Long Term Liability Charges

25,914,000 29,751,000 30,973,000

Redeemable Preferred Stock

(1,390,000) (1,894,000) (2,173,000)

Other Stockholder Equity

Total Stockholder Equity

Net Tangible Assets

$1,501,000 ($1,773,000) ($2,672,000)

Past 3years Cash Flow

All numbers in thousands

Operating Activities, Cash Flows Provided By or Used In

Adjustments To Net Income

Changes In Accounts Receivables

Changes In Other Operating Activities

Total Cash Flow From Operating Activities

Investing Activities, Cash Flows Provided By or Used In

Other Cash flows from Investing Activities

Total Cash Flows From Investing Activities

Financing Activities, Cash Flows Provided By or Used In

Total Cash Flows From Financing Activities

Effect Of Exchange Rate Changes

Change In Cash and Cash Equivalents

Summary of 3years Cash Flow

Option Chain Data For Various Expiraton Dates

Option Chain for AMR Corp. (AMR)

Last Chg Bid Ask Vol Open Int Strike

Last Chg Bid Ask Vol Open Int

0.25 2.20 2.30

0.15 1.35 1.50 294

@AMRPL 0.30 -0.05 0.25 0.30

0.05 0.70 0.80 424

10.00 @AMRPB 0.60 -0.05 0.55 0.65 1300

0.05 0.30 0.40 131

11.00 @AMRPM 1.25 -0.50 1.15 1.25 760

12.00 @AMRPN 2.05 -0.50 1.95 2.05

13.00 @AMRPO 3.10

14.00 @AMRPP 5.04

15.00 @AMRPC 5.50