TY  - BOOK
AU  - Sinha, Parthasarathi
AU  - Pagaria, Ravi
TI  - Energy derivative pricing and applications by Parthasarathi Sinha and Ravi Pagaria (Student Project)
U1  - SP 2006/1328 
PY  - 2006///
CY  - Ahmedabad
PB  - Indian Institute of Management
KW  - Energy derivative pricing
KW  - Project report (student)
N1  - Submitted to Prof. Arnab Laha
N2  - OTC energy options and swaps are unique in that essentially all of them are average price options.  These have been popular for many years and are considered very plain vanilla in the industry.  More exotic options, such as barriers, are extremely rare in the energy sector.  The OTC energy market is not nearly as price transparent as, for example, the OTC foreign exchange market.  Despite this, corporate end-users and producers tend to prefer the OTC markets since basis issue are fewer and products can be structured to more closely replicate their cash market activities.  Because of differences in contract design between these instruments and exchange traded instruments banks' hedging decisions either OTC or back to back -are crucial.
ER  -