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Oil & refined products

Unleaded prices feel the heat

Data management and analytics specialist FAME Information Services looks at the effect the US driving season is having on US gasoline prices, taking into account various factors – in particular, the big impact of higher crude oil prices this summer

Mean-reverting smiles

Commodity markets such as crude oil exhibit mean reversion as well as option smiles. David Beaglehole and Alain Chebanier meet this challenge, constructing a model suitable for pricing exotic options in these markets

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