Problem 2: Company Trading Portfolio. (3 points)
Central Florida Energy is a utility that owns power plants and serves customers. From 2pm to 3pm on
October 10, 2023, Central Florida Energy has the following loads to serve:
\begin{itemize}
\item A long-term contract for the sale of 200 MWh at price of 15.00 $/MWh to an industrial customer.
\item Residential customer load is 300 MWh, and the retail rate is 25 $/MWh.
\end{itemize}
The utility also participates in a futures and options market, and has the following positions:
\begin{itemize}
\item A futures contract for the purchase of 100 MWh at 17.00 $/MWh.
\item A put option for 250MWh at an exercise price of 20.50 $/MWh. The option fee is 1.00 $/MWh.
\end{itemize}
In addition, the utility participates in a spot electricity market. The spot market price during the hour is
21.00 $/MWh. The power plants produce 600 MW at an average cost of 14.00 $/MWh.
Calculate the profit or loss made by Central Florida Energy during that hour.
