Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Compact case
Case
-
Reference no. UVA-F-1300
Published by: Darden Business Publishing
Originally published in: 2000
Version: 02.2011
Revision date: 02-Jun-2011

Abstract

New options on weather from Enron are described, in particular floors, swaps, and caps on heating degree days. An electric utility is considering whether to purchase a weather derivative to offset the risk of low volume of kilowatt hours. After understanding the nature and purpose of the contract, students will structure the option in preparation for valuing it. An Excel spreadsheet file ''UVA-S-F-1300'' is available to accompany this case.

About

Abstract

New options on weather from Enron are described, in particular floors, swaps, and caps on heating degree days. An electric utility is considering whether to purchase a weather derivative to offset the risk of low volume of kilowatt hours. After understanding the nature and purpose of the contract, students will structure the option in preparation for valuing it. An Excel spreadsheet file ''UVA-S-F-1300'' is available to accompany this case.

Related