Introduction -- China's energy security: a new framework for analysis -- China's domestic energy sector -- The global search for petroleum -- Safeguarding China's seaborne petroleum supplies -- China's continental petroleum strategy -- Global, maritime, and continental implications -- Conclusion

In this paper the implicit early unwind option of a risk neutral arbitrageur is valued. The problem is analyzed in a market microstructure framework where four different groups of market participants interact. Within this model the equilibrium price relationship between stock and futures markets...