Pricing of Gas Swing Options using Monte Carlo Methods

Motivated by the changing nature of the natural gas industry in the European Union driven by the liberalization process, we focus on pricing of gas swing options. These options are embedded in typical gas sales agreements in the form of offtake flexibility concerning volume and time. The gas swing option is actually a set of several American puts on a spread between prices of two or more energy commodities. This fact together with the fact that the energy markets are fundamentally different from traditional financial security markets is important for our choice of valuation technique. Due to the specific features of the energy markets, the existing analytic approximations for spread option pricing are hardly applicable to our framework. That is why we employ Monte Carlo methods to model the spot price dynamics of the underlying commodities. The price of an arbitrarily chosen gas swing option is then computed in accordance with the concept of risk-neutral expectations. Finally, our result is compared with the real payoff from the option realized at time of the option execution and the maximum ex-post payoff the buyer could generate in case he knew the future, discounting to the original time of the option pricing.energy markets, gas sales agreement, gas swing option, Monte Carlo simulations, spread option pricing

Pricing of gas swing options using Monte Carlo methods

Motivated by the changing nature of the natural gas industry in the European Union driven by the liberalization process, we focus on pricing of gas swing options. These options are embedded in typical gas sales agreements in the form of offtake flexibility concerning volume and time. The gas swing option is actually a set of several American puts on a spread between prices of two or more energy commodities. This fact together with the fact that the energy markets are fundamentally different from traditional financial security markets is important for our choice of valuation technique. Due to the specific features of the energy markets, the existing analytic approximations for spread option pricing are hardly applicable to our framework. That is why we employ Monte Carlo methods to model the spot price dynamics of the underlying commodities. The price of an arbitrarily chosen gas swing option is then computed in accordance with the concept of risk-neutral expectations. Finally, our result is compared with the real payoff from the option realized at time of the option execution and the maximum ex-post payoff the buyer could generate in case he knew the future, discounting to the original time of the option pricing

Economic loss in Czech photovoltaic power plants

This text provides a financial survey of a small sample of Czech photovoltaic (PV) plants. To evaluate the extent of market losses, we calculate the shadow market price of solar electricity. From the profit and loss accounts of the PV plants and the shadow market price we estimate the total economic loss generated by PV electricity sector in the Czech Republic. The presented microeconomic approach has two main advantages: Firstly, we work with real observed data, which offsets the drawback of a limited sample. Secondly, the profit accounting calculation enables sensitivity analysis with respect to key variables of the plants. We show that every million invested in PV plants would generate an annual loss of 11%. Given the estimated solar assets of CZK 127.4 billion (EUR 560 million) as of December 2010, this translates in at least CZK 14 billion lost in the Czech solar sector in 2011. About 42% of this loss is due to high technology costs and corresponds to pure dead weight loss, while the remaining 58% constitute the redistributive profit component of subsidies. Finally, we calculate that unless electricity prices increase or technology costs decrease approximately tenfold, PV plants will remain loss making

TRY plant trait database – enhanced coverage and open access

Plant traits - the morphological, anatomical, physiological, biochemical and phenological characteristics of plants - determine how plants respond to environmental factors, affect other trophic levels, and influence ecosystem properties and their benefits and detriments to people. Plant trait data thus represent the basis for a vast area of research spanning from evolutionary biology, community and functional ecology, to biodiversity conservation, ecosystem and landscape management, restoration, biogeography and earth system modelling. Since its foundation in 2007, the TRY database of plant traits has grown continuously. It now provides unprecedented data coverage under an open access data policy and is the main plant trait database used by the research community worldwide. Increasingly, the TRY database also supports new frontiers of trait‐based plant research, including the identification of data gaps and the subsequent mobilization or measurement of new data. To support this development, in this article we evaluate the extent of the trait data compiled in TRY and analyse emerging patterns of data coverage and representativeness. Best species coverage is achieved for categorical traits - almost complete coverage for ‘plant growth form’. However, most traits relevant for ecology and vegetation modelling are characterized by continuous intraspecific variation and trait–environmental relationships. These traits have to be measured on individual plants in their respective environment. Despite unprecedented data coverage, we observe a humbling lack of completeness and representativeness of these continuous traits in many aspects. We, therefore, conclude that reducing data gaps and biases in the TRY database remains a key challenge and requires a coordinated approach to data mobilization and trait measurements. This can only be achieved in collaboration with other initiatives

Odpadové hospodářství v Kyjově

Import 20/04/2006Prezenční výpůjčkaVŠB - Technická univerzita Ostrava. Ekonomická fakulta. Katedra (153) veřejné ekonomik

Motivation as a leadership

Summary This bachelor thesis is focused on Motivation as leadership. It depends on methods of motivation that are applied by managers in leading their employees. It is about how correctly and effectively they are using their motivation for leading their employees. The thesis consists of two parts theoretical and practical. The theoretical part includes the most basic terms which are important for understanding this theme. Theoretical part is processed and derived by literature mentioned below. At the introduction are discussed concepts such as management, the manager and his competence or roles. For better understanding which role motivation captures for managing people, all concepts are explained, such as leadership styles, motivation, incentive and communication, which are important for leadership. The practical part is based on structured interviews with managers, it is down their answers which were compared. Structured interviews are based on the twelve important issues which five managers from three different companies are asked about. Finally, the evaluation of their responses, resultant comparison and final answer about how they put emphasis on executives for motivation

Effects of nitrogen and phosphorus supply on growth and floweringphenology of the snowbed forb Gnaphalium supinum L.

The warming-induced increase in nutrient mineralization and the further increase in atmospheric nitro-gen depositions raise the topic of whether and how alpine plants will react to enhanced nutrient availability. Despite several studies have shown the effects of fertilization on primary production of alpine plants, only few studies have considered the influences of nutrients on reproduction. Here, we investigated the effects of nitrogen (N) and phosphorus (P) amendments on cover, number of ramets, flowering effort and phenological timing of Gnaphalium supinum, an arctic-alpine widespread snowbed species. We set up an experimental design with four fertilization treatments (low N, P without addi-tional N, low N + P, and high N + P) and an unfertilized control for three years (2003–2005), within a late snowbed located in the Italian Alps (Gavia Pass, 2700 m a.s.l.). The cover of Gnaphalium supinum was recorded at the peak of the aboveground biomass development in the three years, while the temporal dynamic of ramet density and reproductive phenophases were monitored during the 2005 growing sea-son. The clonal growth of G. supinum resulted to be co-limited by N and P, while the flowering effort was stimulated by P. Flowering date was advanced by P supply, while N alone did not show any significant effect on phenology. In a warming scenario, with a predicted increase in N and P availability by nutrient mineralization and atmospheric deposition, this species should probably experience some benefits forits growth and reproduction if not limited by other factors such as the length of the growing season or interspecific competition