Nick Pan：【20级MME】Energy Risk Management
The objective of the course is to introduce students to the basic energy trading and risk management strategies for various commodities (crude oil, natural gas, coal, electricity) using financial derivatives. The pricing fundamentals for the commodities and the market structure, and the organization of a trading operation will be discussed. This course also provides a broad foundation in risk management by examining both theory and practice. This course covers various hedging and speculations of common energy derivatives contracts such as futures, swaps, and options. Students will gain a good understanding of the roots of financial risk management in theory and gain exposure to the frontier of risk measurement and management techniques. The tools covered in this course range from regression analysis to Value-at-Risk (VaR) analysis using Monte Carlo simulation. The course also covers refinements such as scenario analysis and stress testing. Case studies and empirical applications will focus on the energy industry and firms.