What value of the spot market would reduce the profit or loss of the company to zero? Would this change in spot price affect any of the option contracts?
The Syldavian Power and Light Company owns one generating plant and serves some load. It has been actively trading in the electricity market and has established the following position for 11 June between 10 : 00 and 11 : 00 A.M.: Long-term contract for the purchase of 600 MW during peak hours at a price … Read more