%0 Journal Article %T Impacts of Premium Bounds on the Operation of Put Option and Day-ahead Electricity Markets %J International Journal of Engineering %I Materials and Energy Research Center %Z 1025-2495 %A Raouf Sheybani, H. %A Oloomi Buygi, M. %D 2017 %\ 11/01/2017 %V 30 %N 11 %P 1752-1761 %! Impacts of Premium Bounds on the Operation of Put Option and Day-ahead Electricity Markets %K Equilibrium of joint put option and day %K ahead markets %K Option market modeling %K Supply function competition‎ %K Put option pricing %R %X In this paper‎, ‎the impacts of premium bounds of put option contracts on the operation of put option and day-ahead electricity markets are studied‎. ‎To this end‎, ‎first a comprehensive equilibrium model for a joint put option and day-ahead markets is presented‎. ‎Interaction between put option and day-ahead markets‎, ‎uncertainty in fuel price, impact of premium bounds, and elasticity of consumers to strike price‎, ‎premium price, and day-ahead price are taken into account in this model‎. ‎Then, a new method for put option pricing is proposed. By applying the presented model to a test system, the impacts of premium bounds on equilibrium of joint put option and day-ahead markets are studied‎. %U https://www.ije.ir/article_73062_c07e3857c69c3899b274ad6fdf7c6f8a.pdf