Feed - in Tariffs (FiTs) incentivise the deployment of renewable energy technologies by subsidising remuneration and
transferring market price risk from investors, through policymakers, to a counterparty.
Devine, Mel and Farrell, Niall and Lee, William (2014): Managing investor and consumer exposure to electricity
market price risks through Feed - in Tariff design.
The arbitrageur can also put a limit order, but remember that the more times expires, the
more market price risk.
Wolfgang Sabel, managing director of Kaack, said the collaboration has the potential to reach a greatly untapped client network, grow the agricultural derivatives market in some of Europe's most important agricultural geographies, and transform how the European dairy industry
manages market price risk.
Using Stackelberg game theory and option pricing, we define FiT policies that efficiently
divide market price risk, conditional on risk preferences and market conditions.
Market price risk, for example, can be reduced by owning a short - term CD or a money market fund because the market price stays constant.
Both equities and ETFs can offer potential growth from market price appreciation; however, they are subject to market volatility and thus, open to
market price risk and potential loss of principal.