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Atribución-NoComercial-SinDerivadas 3.0 España
Abstract:
We employ the Schwartz and Smith (2000) model to explore the dynamics of the
UK gas markets. We discuss in detail the short-term and long-term market prices of
risk borne by the market players and how deviations from expected cyclical storage
affect the shoWe employ the Schwartz and Smith (2000) model to explore the dynamics of the
UK gas markets. We discuss in detail the short-term and long-term market prices of
risk borne by the market players and how deviations from expected cyclical storage
affect the short-term market price of risk. Finally, we illustrate an application of the
model by pricing interruptible supply contracts that are currently traded in the UK[+][-]