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discussed. Dynamic hedging deltas in this real option context are also developed. Monte Carlo simulation results show that the …) method. The simulated dynamic hedging deltas are shown to differ from the ones implied by the NPV method. …
Persistent link: https://www.econbiz.de/10005034954
This paper presents the results of a stochastic linear program for estimating the supply of corn residue for use as raw material in an ethanol plant. The model is based on the production capacity of an average Illinois farm, and considers the feasibility of three mutually exclusive residue...
Persistent link: https://www.econbiz.de/10005786679