Energy Trading 4

Which of the following does NOT influence the marginal cost structure in energy production?

• Efficiency

• Certificate Costs

• Fuel Costs

• Investment

Which of the following is NOT a power unit?

• W

• kWh

What is NOT a goal of emission trading?

• Decrease CO2 emissions

• Account for marginal social costs

• Efficiently allocate abatement

• Make energy production more costly in general

How are electricity prices chosen?

• Marginal costing for each producer

• Merit order curve

• Average pricing over the market

• Best guess

What does a positive drift factor usually implicate for the geometric Brownian motion?

• Asset value is expected to decline

• Asset value is expected to increase

• Volatility is expected to decline

• Volatility is expected to increase

Which of the following is an important measure for risk management?

• Initial asset price

• Time period

• Drift

• 95% VaR

You are given the following values:

Bid 24.75; Bid 24.45; Bid 34.95; Ask 25.25; Ask, 24.55

Which is the first line of the order book?

• Bid 24.75; Ask 24.55

• Bid 34.95; Ask 24.55

• Bid 24.45; Ask 25.25

• Bid 34.95; Ask 25.25

What is not a commodity?

• Metals

• Agricultural products

• Android Smartphones

• Energy

Which of the following is not a job role in energy trading?

• Portfolio Manager

• Dispatcher

• Analyst

• Angel Investor

Which of the following is not a Tie-Breaker?

• Order Imbalance

• Market Direction

• Continuous Market Price

• Number of buyers/sellers