ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book presents selected results from a comprehensive study of the volatility risk premium in the oil market arising from the normal backwardization of the risk yield curve as a result of oil producers' hedging forward delivery contracts. It considers investment in the global consumer wine market using a threshold cointegration model and the first trading use of the Mediabanca Global Wine Industry Share Price Index. The book analyses contemporary aspects of the financialization of commodities, beginning with the impact of oil prices on United States equities. It proposes a lattice-based method and a simulation-based method for pricing swing contracts with indexation. The book gives an overview of the current and future modelling of electricity markets. It identifies the influential factors in six Chinese commodity futures markets, principally in Shanghai, Shenzen and Hong Kong, which deal in agricultural commodity, metal and energy futures.
