Review article
THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET
V. Uran
Full text: croatian pdf 550 Kb
page 114-133
downloads: 557
cite
APA 6th Edition
Uran, V. (2007). THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET. Journal of Energy, 56 (1), 114-133. Retrieved from https://hrcak.srce.hr/11848
MLA 8th Edition
Uran, V.. "THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET." Journal of Energy, vol. 56, no. 1, 2007, pp. 114-133. https://hrcak.srce.hr/11848. Accessed 18 Dec. 2024.
Chicago 17th Edition
Uran, V.. "THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET." Journal of Energy 56, no. 1 (2007): 114-133. https://hrcak.srce.hr/11848
Harvard
Uran, V. (2007). 'THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET', Journal of Energy, 56(1), pp. 114-133. Available at: https://hrcak.srce.hr/11848 (Accessed 18 December 2024)
Vancouver
Uran V. THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET. Journal of Energy [Internet]. 2007 [cited 2024 December 18];56(1):114-133. Available from: https://hrcak.srce.hr/11848
IEEE
V. Uran, "THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET", Journal of Energy, vol.56, no. 1, pp. 114-133, 2007. [Online]. Available: https://hrcak.srce.hr/11848. [Accessed: 18 December 2024]
Full text: english pdf 550 Kb
page 114-133
downloads: 753
cite
APA 6th Edition
Uran, V. (2007). THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET. Journal of Energy, 56 (1), 114-133. Retrieved from https://hrcak.srce.hr/11848
MLA 8th Edition
Uran, V.. "THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET." Journal of Energy, vol. 56, no. 1, 2007, pp. 114-133. https://hrcak.srce.hr/11848. Accessed 18 Dec. 2024.
Chicago 17th Edition
Uran, V.. "THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET." Journal of Energy 56, no. 1 (2007): 114-133. https://hrcak.srce.hr/11848
Harvard
Uran, V. (2007). 'THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET', Journal of Energy, 56(1), pp. 114-133. Available at: https://hrcak.srce.hr/11848 (Accessed 18 December 2024)
Vancouver
Uran V. THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET. Journal of Energy [Internet]. 2007 [cited 2024 December 18];56(1):114-133. Available from: https://hrcak.srce.hr/11848
IEEE
V. Uran, "THE PRINCIPLE OF EXERCISING OPTIONS ON THE ELECTRICITY MARKET", Journal of Energy, vol.56, no. 1, pp. 114-133, 2007. [Online]. Available: https://hrcak.srce.hr/11848. [Accessed: 18 December 2024]
Abstract
Continual price fluctuations are possible to hedge by using various financial instruments; including options. An option buyer buys the right to the settlement price of an underlying asset such as electricity. Due to the volatility of the asset price; the buyer is not obliged to exercise the option. In such a case; the buyer's only loss is the purchased right or the option premium; which is equal to the option price. Mathematical models for option pricing have been developed in the last hundred years. These models were very popular during the 1970s; owing to the application of the Black-Scholes formula for the calculation of theoretical option prices. In this article; options are distinguished according to various criteria; specific exercising methods are described and the historical development of option pricing models is reviewed. An example of option exercising with closing out of the margins on the largest Middle European electricity exchange; EEX; is presented.
Keywords
electricity; option; market
Hrčak ID:
11848
URI
https://hrcak.srce.hr/11848
Publication date:
28.2.2007.
Article data in other languages:
croatian
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