Description
Commodity and energy portfolios are full of flexibility. Various options, embedded in supply contracts and physical assets, require managerial decisions. Often, contracts for delivery of metals, softs, fuels or electricity incorporate optionality. Next, production, consumption, storage and transport capacity allow for various ways of allocation. In order to manage financial and physical assets optimally, business decisions have to be made in an efficient and effective manner. In this light, in this book attention is given to the real option approach. It can be applied to optimise the capitalisation.
