storage model simple issues brad thoughts concerns needs curve inputs job help curves system properly set intrinsic value vs time value intrinsic value depends allocate volumes rough idea allocation spreadsheet calucate intrinsic value within model difference total intrinsic option time value however pre allocating volumes killed options storage model volumes allocated dynamically therefore hard distinguish intrinsic vs time value factor loading factor loadings used give historical correlation matrix three factors correspond paralle shift slopping curveture covariance matrix model expressed form covar row vol _ correl j colum vol _ j vols implied volatilities vol curve correl j l l residue small l factor loading matrix simple words factor loadings say 60 x 3 simplier way us remember historical correlation matrix say 60 x 60 let know offer help zimin brad horn 02 15 2000 07 15 zimin lu hou ect ect cc sandra henderson hou ect ect subject storage model simple issues zimin thanks time revised storage valuation right point similarity market bids basic questions tied implementation calibration model infrastructure support obviously need build link forward curves model working new location short term aprox 1 month like establish link ena database egsprod 32 order fetch long dated price volatility curves link ena forward curves would quickly severed favor curves generated new bridgeline entity database name data structure yet defined however clear required two stage process support model definition model input minimum support requirements provide appreciated work sandra henderson enron employee providing support ensure model continues work regardless downstream system changes may take place build establish separate trading systems databases meanwhile anything think ensure im running quickly sandra linking excel spreadsheets bridgeline forward curves key pricing projects storage model supplied research intrinsic vs extrinsic value would helpful decompose model calculated storage price distinguish intrinsic vs extrinsic time option value could easily link new spreadsheet tab model inputs calculate intrinsic value simple difference could determine extrinsic value ive included simple spreadsheet calculation intrinsic value review wanted share ask following nature model define intrinsic extrinsic value differently simple difference proposed think would make sense simple value decomposition backcode c code via dll order ensure run time faster goal straightforward better understand model sensitivities b determine option approach associating significant value beyond simple present value time spreads factor loadings thoughts insights offer regards factor loadings interpret graph 3 factors calculated factor loadings always mystery example problems looking warning mispricing anything implied 1 day price change expected curve shapings curve reshapings key storage valuation calibration preparing simple summary descriptive statistics allow refine model inputs share data model results im running