Classic cutting edge: Swing options and the quest for valuation

Classic cutting edge - Swing options - the quest for valuation

In the energy world – in particular natural gas and electricity – many contracts incorporate flexibility-of-delivery options. Subject to daily as well as periodic (monthly, or semi-annual) constraints, they permit the option holder to exercise the right repeatedly to receive greater or smaller amounts of energy. Consequently, these options have an implicit dependence through time: the exercise of an option today limits, and may eliminate, the ability to draw such energy tomorrow. These options

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: