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 …

This paper is the first to study the hedging of price risk with uncertain payment dates, a frequent problem in practice …. It derives a variance-minimizing hedging strategy for two settings, the first employing linear contracts with different …