• 1 Introduction
  • 2 The Embedded Power Option
  • 3 Hedging and Model Uncertainty
  • 4 Static Hedging
  • 4.1 Hedging with standard options
  • 4.2 Bounds on contract parameters implied by market prices
  • 5 Conservative contract specification based on a robust dynamic hedge
  • 5.1 Robust hedging
  • 5.2 Improving the price bounds
  • 6 Conclusion
  • References