Finance BasicsAssume that the exercise (strike) price for call option is 700 and cumulative HDD is 1050. The dollar multiplier per degree day is $10,000. What will be cash payoffs to call option buyer in this situation?Since electricity cannot be stored, its price has been subject to 100%-200% volatility per annum. The CME Group trades electricity futures and there are also over-the-counter electricity options and forwards. (a) Please list the likely major users of electricity futures, forwards, and options. (b) How might Southern California Edison use electricity futures or options to protect or improve its financial performance? Explain. Limit your answer to ten sentences.
GET AN ANSWER TO THIS ESSAY TODAY!
Save time and grade. Get a complete paper today.
Our leading custom writing service provides custom written papers in 80+ disciplines. Order essays, research papers, term papers, book reviews, assignments, dissertation, thesis or extensive dissertations & our expert ENL writers will easily prepare a paper according to your requirements.
Place this order today and get an amazing discount!!