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◾ Options on Multiple Underlying Assets
| Content Provider | Scilit |
|---|---|
| Author | Davison, Matt |
| Copyright Year | 2014 |
| Description | Companies operating in multiple countries take on currency risk, in that they may have costs in one currency and sales in another. One way for them to hedge their risk is to enter into an options contract to exchange one currency for another. In energy markets, it is oen quite instructive to consider a power plant as the option to convert one commodity (e.g., coal or natural gas) into another (electrical power). Also, in an energy setting, a natural gas storage facility can be considered as the option to convert gas for delivery at one time into gas for delivery at another time. All of these are examples of exchange options, an option on two underlying assets. Book Name: Quantitative Finance |
| Related Links | https://content.taylorfrancis.com/books/download?dac=C2010-0-49971-6&isbn=9780429194962&doi=10.1201/b16039-33&format=pdf |
| Ending Page | 395 |
| Page Count | 12 |
| Starting Page | 384 |
| DOI | 10.1201/b16039-33 |
| Language | English |
| Publisher | Informa UK Limited |
| Publisher Date | 2014-05-08 |
| Access Restriction | Open |
| Subject Keyword | Book Name: Quantitative Finance Finance Coal Markets Contract Assets Currency Electrical Hedge Take Instructive Oen |
| Content Type | Text |
| Resource Type | Chapter |
