The rules of the Syldavian electricity market stipulate that all participants must trade energyexclusively through the Power Pool. However, the Syldavia Aluminum Company (SALCo) andthe Northern Syldavia Power Company (NSPCo) have signed a contract for difference for thedelivery of 200MW on a continuous basis at a strike price of 16 $/MWh.a. Trace the ?ow of power and money between these companies when the pool price takes thefollowing values: 16$/MWh, 18$/MWh and 13 $/MWh.b. What happens if during one hour the Northern Syldavia Power Company is able to deliveronly 50 MWh and the pool price is 18 $/MWh?c. What happens if during one hour the Syldavia Aluminum Company consumes only 100MWhand the pool price is 13 $/MWh?
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