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Energy derivative market and derivative pricing via simulation

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

Abstract

The deregulation of power industry worldwide has delivered the efficiency gains to the society; meanwhile, the intensity of competition has increased uncertainty and risks to market participants. Consequently, market participants are keen to hedge the market risks and maintain a competitive edge in the market; and this is a good explanation to the flourish of electricity derivative market. In this paper, the authors gave a comprehensive review of derivative contract pricing methods and proposed a new framework for energy derivative pricing to suit the needs of a deregulated electricity market.
Original languageEnglish
Title of host publication7th IET International Conference on Advances in Power System Control, Operation and Management (APSCOM 2006)
DOIs
Publication statusPublished - 2006
Externally publishedYes
Event7th IET International Conference on Advances in Power System Control, Operation and Management, APSCOM 2006 - Hong Kong, China
Duration: 30 Oct 20062 Nov 2006

Publication series

NameIET Conference Publications

Conference

Conference7th IET International Conference on Advances in Power System Control, Operation and Management, APSCOM 2006
PlaceChina
CityHong Kong
Period30/10/062/11/06

Bibliographical note

Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

Research Keywords

  • ARIMA and Monte Carlo simulation
  • Energy Derivative
  • OTC Market

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