A derivative is a financial instrument whose value depends on the value of more basic underlying variables.\u00a0 Most commonly, these variables are the prices of traded assets.\u00a0 Through the use of stochastic modeling with differential equations, one can effectively price any derivative.\u00a0 By examining derivatives of energy assets, our goal is to address some of the problems unique to valuing energy assets.<\/p>\n","protected":false},"excerpt":{"rendered":"
Aaron Adalja with Cyrus TaylorUsing Derivatives to Model Energy Assets<\/p>\n
A derivative is a financial instrument whose value depends on the value of more basic underlying variables.\u00a0 Most commonly, these variables are the prices of traded assets.\u00a0 Through the use of stochastic modeling with differential equations, one can effectively price any derivative.\u00a0 By examining derivatives of energy assets, our goal is to address some of the problems unique to valuing energy assets.<\/p>\n