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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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: