Option valuation of flexible investments : the case of a coal gasifier
This paper examines the use of contingent claim analysis to evaluate the option of retrofitting a coal gasifier on an existing gas-fired power plant in order to take advantage of changes in the relative prices of natural gas and coal. Commodity price changes over time were modeled by binomial stocha...
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| Format: | Working Paper |
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MIT Center for Energy and Environmental Policy Research
2009
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| Online Access: | http://hdl.handle.net/1721.1/50188 |