Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help Problem 4 (2 points): Orlando Power is a GenCo that participates in the trading hour 1PM - 2PM on 10/13/2021. It has following

please help
image text in transcribed
Problem 4 (2 points): Orlando Power is a GenCo that participates in the trading hour 1PM - 2PM on 10/13/2021. It has following positions for the trading hour: Signed a long-term contract that sells 460MW to a local utility at 145/MWh Purchased a futures contract to buy 100MW at 12$/MWh Purchased a put option to sell 50MW at exercise price of 15.5$/MWh. The option fee is 1$/MWh. Orlando Power has one generating unit with cost function C = 9.5P+368/ MWh. It turns out that the spot market price for the hour is 13.8 $/MWh. Calculate the profit/loss that Orlando Power can make in this trading hour

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Non Specialists

Authors: Eddie McLaney, Peter Atrill

2nd Edition

0135717469, 9780135717462

More Books

Students also viewed these Accounting questions

Question

3 When is it a good idea to use the internal supply of labour?

Answered: 1 week ago

Question

5 What are the main aims of talent management?

Answered: 1 week ago