IAEE summer school
The 39th Annual IAEE International Conference will be held 19-22 June at the Norwegian School of Economics. Three days ahead of the conference, NHH also hosts the IAEE Summer School.
Professor Petter Bjerksund, Department of Business and Management Science is in charge of this year´s Summer School «Financial Management of Energy Price Risk» from Thursday 16th to Saturday 18th June.
About the Summer School
The increased uncertainty of energy prices has fueled the development of financial energy markets. Producers, suppliers and end-users can use these markets to manage risk. Moreover, the markets attract financial investors seeking profitable business opportunities.
An energy forward contract exchanges an uncertain future energy price for a fixed price (or vice versa). Thus, a producer can reduce price risk entering such a contract. An option contract gives the holder the right (but not the obligation) to exercise such a future exchange. Options are used to secure a minimum or maximum future price.
An energy company can use information from the financial energy market as the basis for estimating the market value of a given position, activity, or segment (mark-to-market), as well as its exposure to market price risk (Value at Risk). Moreover, an energy company can use traded instruments in the energy finance market to implement its risk management strategy or to take positions based on own market view.
• Financial energy and commodity markets: An overview
• The forward curve
• Price risk (volatility)
• Option valuation
• Risk measurement and risk management (Value at Risk)