Read this is and give me feedback before you start. let me know what exactly required ,
Assumptions
In any real-world analysis you have a trade-o between fewer assumptions which
lead to harder calculations and more time spent, and more assumptions which
leads to greater pricing error. Thus you will have to make that tradeo with this
project. You are free to make any assumption you wish, but you must be ready
to defend this assumption (e.g. `the cost savings in terms of time saved from the
assumption is worth more than the small pricing error the assumption induces\’).
Electricity Markets
I assume none of you are familiar with deregulated electricity markets, so I ad-
vise each group to make use of the project discussion board. Do not hesitate to
1I have done this analysis for deregulated utilities (notably NextEra Energy) and hedge
funds.
1 ask questions. By the end of the project you will know a fair amount about these
markets|which is useful as more and more electricity markets are deregulated.
Last Completed Projects
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