Abstract
We envision a model with one good and two periods, t= 0,1. A monopolist with an increasing utility function u is the sole producer of the good, and the good is produced only in the last period. The monopolist chooses quantity Q to maximize profits. Demand is uncertain and is realized between the two periods. Given a competitive derivatives market with risk-neutral market makers, the payoff of the derivatives contract must be zero in expectation.
