Asian Option Pricing Model Using Monte Carlo Simulation: Electricity…

In competitive electricity markets, The volatility is rooted in the risks associated with holding assets when there is an uncertain risk associated with the future value of the assets. Industrial the price behavior of power is extremely volatile. consumers are highly exposed to volatility in the cost of electricity. This case study focuses on how a business hedges the electricity price volatility by using the average-price options (e.g., Asian option). Using Monte Carlo Simulation, we calculated… More information...

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