3.3 The following six companies participate, along with others, in the Southern Antarctica electrical energy market:...

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3.3 The following six companies participate, along with others, in the Southern Antarctica electrical energy market: Date Company Type Amount Price 10/9/15 Magenta Buy 50 14.50 Red: A generating company owning a portfolio of plants with a maximum capacity of 1000 MW. 20/9/15 Purple Sell 100 14.75 30/9/15 Yellow Green: Another generating company with a portfolio of plants with a maxi- mum capacity of 800 MW. Buy 200 15.00 10/10/15 Magenta Buy 100 15.00 Blue: A retailer of electrical energy. Yellow: Another retailer of electrical energy. 20/10/15 Red Sell 200 14.75 30/10/15 Green Sell 250 15.75 Magenta: A trading company with no generating assets and no demand. 30/10/15 Blue Buy 250 50 15.75 Purple: Another trading company with no physical assets. 10/11/15 Purple Buy 50 15.00 The following information pertains to the operation of this market for Monday 29 February 2016 between 1:00 and 2:00 PM. 15/11/15 Magenta Sell 100 15.25 20/11/15 Yellow Buy 200 14.75 Load forecasts Blue and Yellow forecast that their customers will consume 1200 MW and 900 MW respectively during that hour. 30/11/15 Blue Buy 300 15.00 10/12/15 Red Sell 200 16.00 Long-term contracts June 2015: Red signs a contract for the supply of 600 MW at 15 $/MWh for all hours between 1 January 2015 and 31 December 2020 July 2015: Blue signs a contract for the purchase of 700 MW for all hours between 1 February 2016 and 31 December 2016. The price is set at 12 S/MWh for off-peak hours and at 15.50 $/MWh for peak hours. August 2015: Green signs a contract for the supply of 500 MW at 16 S/MWh for peak hours in February 2016. September 2015: Yellow signs a contract for the purchase of electrical energy. The contract specifies a profile of daily and weekly volumes and a profile for daily and weekly prices. In particular, on weekdays between 1:00 and 2:00 P.M.. the volume purchased is 550 MW at 16.25 S/MWh. Futures contracts All contracts are for delivery on 29 February 2016 between 1:00 and 2:00 PM. Options contracts In November 2015, Red bought a put option for 200 MWh at 14.75 $/MWh. The option fee was $50. 15/12/15 Red Sell 200 15.50 20/12/15 Blue Sell 50 15.50 15/1/16 Purple Sell 200 14.50 20/1/16 Magenta Buy 50 14.25 10/2/16 Yellow Buy 50 14.50 20/2/16 Red Buy 200 16.00 25/2/16 Magenta Sell 100 28/2/16 Purple Buy 250 28/2/16 Yellow Sell 100 898 17.00 14.00 14.00 In December 2015, Yellow bought a call option for 100 MWh at 15.50$/MWh. The option fee was $25. Outcome The spot price on the Southern Antarctica electricity market was set at 15.75 S/MWh for 29 February 2016 between 1:00 and 2:00 PM. Owing to the difficulties at one of its major plants, Red was able to generate only 800 MW. Its average cost of production was 14.00 S/MWh. Green generated 770 MW at an average cost of 14.25 S/MWh. Blue's demand turned out to be 1250 MW. Its average retail price was 16.50 S/MWh. Yellow's demand turned out to be 850 MW. Its average retail price was 16.40 S/MWh. Assuming that all imbalances are settled at the spot market price, calculate the profit or loss made by each of these participants. 3.3 The following six companies participate, along with others, in the Southern Antarctica electrical energy market: Date Company Type Amount Price 10/9/15 Magenta Buy 50 14.50 Red: A generating company owning a portfolio of plants with a maximum capacity of 1000 MW. 20/9/15 Purple Sell 100 14.75 30/9/15 Yellow Green: Another generating company with a portfolio of plants with a maxi- mum capacity of 800 MW. Buy 200 15.00 10/10/15 Magenta Buy 100 15.00 Blue: A retailer of electrical energy. Yellow: Another retailer of electrical energy. 20/10/15 Red Sell 200 14.75 30/10/15 Green Sell 250 15.75 Magenta: A trading company with no generating assets and no demand. 30/10/15 Blue Buy 250 50 15.75 Purple: Another trading company with no physical assets. 10/11/15 Purple Buy 50 15.00 The following information pertains to the operation of this market for Monday 29 February 2016 between 1:00 and 2:00 PM. 15/11/15 Magenta Sell 100 15.25 20/11/15 Yellow Buy 200 14.75 Load forecasts Blue and Yellow forecast that their customers will consume 1200 MW and 900 MW respectively during that hour. 30/11/15 Blue Buy 300 15.00 10/12/15 Red Sell 200 16.00 Long-term contracts June 2015: Red signs a contract for the supply of 600 MW at 15 $/MWh for all hours between 1 January 2015 and 31 December 2020 July 2015: Blue signs a contract for the purchase of 700 MW for all hours between 1 February 2016 and 31 December 2016. The price is set at 12 S/MWh for off-peak hours and at 15.50 $/MWh for peak hours. August 2015: Green signs a contract for the supply of 500 MW at 16 S/MWh for peak hours in February 2016. September 2015: Yellow signs a contract for the purchase of electrical energy. The contract specifies a profile of daily and weekly volumes and a profile for daily and weekly prices. In particular, on weekdays between 1:00 and 2:00 P.M.. the volume purchased is 550 MW at 16.25 S/MWh. Futures contracts All contracts are for delivery on 29 February 2016 between 1:00 and 2:00 PM. Options contracts In November 2015, Red bought a put option for 200 MWh at 14.75 $/MWh. The option fee was $50. 15/12/15 Red Sell 200 15.50 20/12/15 Blue Sell 50 15.50 15/1/16 Purple Sell 200 14.50 20/1/16 Magenta Buy 50 14.25 10/2/16 Yellow Buy 50 14.50 20/2/16 Red Buy 200 16.00 25/2/16 Magenta Sell 100 28/2/16 Purple Buy 250 28/2/16 Yellow Sell 100 898 17.00 14.00 14.00 In December 2015, Yellow bought a call option for 100 MWh at 15.50$/MWh. The option fee was $25. Outcome The spot price on the Southern Antarctica electricity market was set at 15.75 S/MWh for 29 February 2016 between 1:00 and 2:00 PM. Owing to the difficulties at one of its major plants, Red was able to generate only 800 MW. Its average cost of production was 14.00 S/MWh. Green generated 770 MW at an average cost of 14.25 S/MWh. Blue's demand turned out to be 1250 MW. Its average retail price was 16.50 S/MWh. Yellow's demand turned out to be 850 MW. Its average retail price was 16.40 S/MWh. Assuming that all imbalances are settled at the spot market price, calculate the profit or loss made by each of these participants.