<t>I have some unrelated questions and not sure how to pose them so i will do my best.I am preparing for an inteview and want to make sure i truly understand some of the possible questions. In terms of random number generators, i am aware of psuedo and quasi. Quasi being the better of the two and us...

<t>I have a formula that is suppose to show a high level basis spread. What the formula does is takes the absolute value of each refined product and then takes the absolute value of all grades of crude and then adds the two together. Then I negate the net of all refined products + all crudes...I div...

<t>Ok, Alan...thanks I believe i will try to build your model. A couple of questions for better understanding. Why would i want to use Sqrt[Pi])And why do we need to pull from a series with zero mean? Is this because we are assuming normal distribution. If so, I am using log returns...will this have...

<t>Ok, i need to be a little better at my explanation. Yes, i use historical volsI pull the data from our internal database and I pull the historical prices from last COB (close of business) up to the last 75 trading days.I then take the log return from these prices to derive the VOLS. It is here wh...

<t>Hello Alan,Well i was trying to incorporate Hull's formula for exponentially weighted correlations. So I feel i bastardized his great work by exponentially weighting the VOLS and then using the excel function "Correl" to see the correlations of commodities like WTI, WTS, HO, NG and many more prod...

<t>Thanks so very much for your input Alan. Is it possible to see a quick numerical example? Also, I have read some journals where there is some sort of movement to begin to test the correlation of VOLS given that when VOLS increase dramatically, most security types correlations revert to one. Now, ...

<t>This maybe an absurd question. However I ran some correlations on volatility instead of log returns for WTI and heating oil and Ethanol...to my surprise they were highly similar. Is this just coincidental or is there a mathamatical reason that this is almost the same. IF the same, do you see why ...

<t>This maybe an absurd question. However I ran some correlations on volatility instead of log returns for WTI and heating oil and Ethanol...to my surprise they were highly similar. Is this just coincidental or is there a mathamatical reason that this is almost the same. IF the same, do you see why ...

I dont know that you can say that there is a relationship between WACC and IRR. Neither depend on each other and whether higher or lower, WACC will have zero impact on IRR. I could be wrong here but its just a thought.

<t>Well, I mentioned that we had two options. We could use a perpetuity and use the WACC (which is 7%) but since this would give way too much value and all of us here know that no one else would use a WACC of 7% to value this storage...we decided to go with a present value calculation in year 20, fo...

<t>Hello all,I am running a NPV on a salt dome gas storage unit. Although these facilities theoretically have a infinite life span, for conservative reasons I am placing a 40 year life on our valuation. I show a cash flow stream for 20 years and in year 20 I do a present value using a WACC of 7% as ...

<r>Hello PratishI work in the gas storage division of my company and although we have a model from FEA that does all the work for me...I deal with the exact same dilemma every day. if you go to the following site they have tons of articles that discuss the topic you are wanting to know. I will look ...

<t>Hello everyone,I have been working on a optimization formula that helps with optimization of when to inject or releas gas in a storage facility given the max and min constraint of working gas.Now...the problem I am kinda confused on and I haven't found a teacher at school yet who is willing to he...

<t>I tried to upload the file so you can see the formula quickly but it wont accept Word or Excel, I am sure it is something I am doing wrong. So if you want to take a look at the link, the formula begins on page six. Otherwise, here is my attempt to show the formula the best way i can within this e...

<r>I am starting a new job with a energy company. Within the division I will work at, I will be running models that help calculate the most effective way to inject and extract gas from the storage facilities they own. Although I do not need to know all the mathematics behind the model, I want to mak...