“Commodities and Commodities Derivatives, Modeling and Prices for Agriculturals, Metals and Energy“, by Hélyette Geman. Published by John Wiley & Sons, 2005.

The last few years have been a watershed for commodities, cash and derivatives industry. New regulations and products have led to an explosion in commodities markets, creating a new asset class for investors that include hedge funds as well as university endowments, and has resulted in substantial growth in spot derivative trading.

This book covers hard and soft commodities (energy, agriculture and metals) and analyzes:

• Economic and geopolitical issues in commodities markets
• Commodity price and volume risk
• Stochastic modeling of commodity spot prices and forward curves
• Real options valuation and hedging of physical assets in the energy industry

It is required reading for energy companies and utilities practitioners, commodity cash and derivatives traders in investment banks, the Agrifood business, Commodity Trading Advisors (CTAs) and Hedge Funds.