Options Procurement Policy for Option Contracts with Supply and Spot Market Uncertainty

<table class="table-group" id="tab2"><tr><td><table class="table"><tr><td class="thead-hr" colspan="5"><hr/></td></tr><tr class="thead"><td align="left" rowspan="3">The correlation</td><td align="center" colspan="4"> Optimal solution </td></tr><tr class="thead"><td align="center"> Wholesale contract </td><td align="center" colspan="3"> Option-type contract </td></tr><tr class="thead"><td align="center"><span style="width: 20.7875px;"><svg height="17.825001" id="M191" style="vertical-align:-4.17198pt" version="1.1" viewbox="0 0 20.7875 17.825001" width="20.7875" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
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q-4 71 -28 134q17 33 42 46q24 -12 42 -46q-24 -63 -28 -134q36 23 56.5 41.5t45.5 49.5q36 2 61 -13q0 -28 -19 -59q-65 -10 -130 -43q65 -33 130 -43q19 -31 19 -59z" id="x2217"></path></g><g transform="matrix(.012,-0,0,-.012,13.113,17.763)"><path d="M285 378v-2q65 -13 102 -54.5t37 -97.5q0 -57 -30.5 -104.5t-74 -75t-85.5 -42t-72 -14.5q-31 0 -59.5 11t-40.5 23q-19 18 -16 36q1 16 23 33q13 10 24 0q58 -51 124 -51q55 0 88 40t33 112q0 64 -39 96.5t-88 32.5q-29 0 -64 -11l-6 29q77 25 118 57.5t41 84.5
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</svg></span></td><td align="center"> Total </td></tr><tr><td class="thead-hr" colspan="5"><hr/></td></tr><tr><td align="left"> 0.8 </td><td align="center"> 85.0244 </td><td align="center"> 19.7656 </td><td align="center"> 29.4336 </td><td align="center"> 49.1992</td></tr><tr><td align="left"> 0.4 </td><td align="center"> 85.0244 </td><td align="center"> 19.7656 </td><td align="center"> 29.4336 </td><td align="center"> 49.1992</td></tr><tr><td align="left"> 0 </td><td align="center"> 85.0244 </td><td align="center"> 19.2285 </td><td align="center"> 29.3262 </td><td align="center"> 48.5574</td></tr><tr><td align="left">−0.4 </td><td align="center"> 85.0244 </td><td align="center"> 19.2285 </td><td align="center"> 28.7891 </td><td align="center"> 48.0176</td></tr><tr><td align="left">−0.8 </td><td align="center"> 85.0244 </td><td align="center"> 18.5840 </td><td align="center"> 28.7891 </td><td align="center"> 47.3731</td></tr><tr class="table-tr"><td colspan="5"><hr class="tbody-hr"/></td></tr></table></td></tr></table>

Effect of correlation between spot market price and liquidity.

Discrete Dynamics in Nature and Society

tab2

Table 2

Table 2: Options Procurement Policy for Option Contracts with Supply and Spot Market Uncertainty 