Calibration of multidimensional economic problems proven to be difficult, as there is a high risk of problem miss-identification. In this paper we propose a multistage calibration method to estimate the six parameters of a commodity market price model that includes storage. We assume that the...

While the main conceptual issue related to deposit insurances is the moral hazard risk, the main technical issue is inaccurate calibration of the implied volatility. This issue can raise the risk of generating an arbitrage. In this paper, first, we discuss that by imposing the no-moral-hazard...