welfare increasing than forwards, but the difference is minimal. In the presence of bankruptcy, options are the preferred …Upstream producers that possess market power, sell forwards with a lengthy duration to regional electricity companies … is less likely to be bailed out, the effect on upstream profits is ambiguous while consumers loose. Options are less …

Options on crude oil futures are the most actively traded commodity options. We develop a class of computationally … efficient discrete-time jump models that allow for closed-form option valuation, and we use crude oil futures and options data … crucial for modeling crude oil futures and futures options, and we find evidence in favor of time-varying jump intensities …

connection with fundamentals. Based on these analytical considerations, Marshall endorsed the use of futures and short-selling by … professionals while opposing options, which he saw as dangerous instruments in the service of ill-advised speculation. …