The following six companies participate, along with others, in the Southern Antarctica electrical energy market: Red: A generating company owning a portfolio of plants with a maximum capacity of 1000 MW. Green: Another generating company with a portfolio of plants with a maximum capacity of 800 MW. Blue: A retailer of electrical energy. Yellow: Another retailer of electrical energy. Magenta: A trading company with no generating assets and no demand. Purple: Another trading company with no physical assets. The following information pertains to the operation of this market for Monday 29 February 2016 between 1 : 00 and 2 : 00 P.M. Load forecasts Blue and Yellow forecast that their customers will consume 1200 MW and 900 MW respectively during that hour. Long-term contracts June 2015: Red signs a contract for the supply of 600 MW at 15 $/MWh for all hours between 1 January 2015 and 31 December 2020 68 3 MARKETS FOR ELECTRICAL ENERGY July 2015: Blue signs a contract for the purchase of 700 MW for all hours between 1 February 2016 and 31 December 2016. The price is set at 12 $/MWh for off-peak hours and at 15.50 $/MWh for peak hours. August 2015: Green signs a contract for the supply of 500 MW at 16 $/MWh for peak hours in February 2016. September 2015: Yellow signs a contract for the purchase of electrical energy. The contract specifies a profile of daily and weekly volumes and a profile for daily and weekly prices. In particular, on weekdays between 1 : 00 and 2 : 00 P.M., the volume purchased is 550 MW at 16.25 $/MWh. Futures contracts All contracts are for delivery on 29 February 2016 between 1 : 00 and 2 : 00 P.M.

Options contracts In November 2015, Red bought a put option for 200 MWh at 14.75 $/MWh. The option fee was $50. In December 2015, Yellow bought a call option for 100 MWh at 15.50 $/MWh. The option fee was $25. Outcome The spot price on the Southern Antarctica electricity market was set at 15.75 $/MWh for 29 February 2016 between 1 : 00 and 2 : 00 P.M. Owing to the difficulties at one of its major plants, Red was able to generate only 800 MW. Its average cost of production was 14.00 $/MWh. Green generated 770 MW at an average cost of 14.25 $/MWh. Blues demand turned out to be 1250 MW. Its average retail price was 16.50 $/MWh. Yellows demand turned out to be 850 MW. Its average retail price was 16.40 $/MWh. Assuming that all imbalances are settled at the spot market price, calculate the profit or loss made by each of these participants.