weather hedging strategy. A typical hedging strategy is to use a weather derivative (such as an option) that is constructed on …This paper considers the problem of hedging inventory risk for a seasonal product whose demand is sensitive to weather … weather hedging on his optimal order quantity. Among the main contributions of the paper are recognizing the need for joint …

This paper is concerned with managing risk exposure to temperature using weather derivatives. We consider hedging … of the hedging instrument is done under an equivalent pricing measure. We develop hedging strategies for locations … hedging application. The dynamic hedging strategies are expressed explicitly by the term structure of the volatility. We also …

The agriculture sector observed the penetration of parametric weather risk financial products, including weather index … insurance and weather derivatives, between the late 1990s and the early 2000s. However, the adoption of such products remains … that captures the moderators accelerating and inhibiting pricing structure and willingness to pay for parametric weather …

reinsurers. In response, weather risk hedging may be valuable, however, due to basis risk it has been largely unsuccessful to … dependence of weather risk to reduce basis risk. The analysis shows that the LSHAC model can improve the hedging performance … through more accurate modelling of the dependence structure of weather risks and is more effcient in hedging extreme downside …

The purpose of this paper is to examine weather risk management by application of weather derivatives in agriculture … and evaluate the hedging efficiency. Agriculture is a sector highly sensitive to meteorological elements that affect the … yield of many crops. The underlying weather indices depending on temperature, rainfall and wind speed are analysed. Pricing …

With the increasing share of volatile renewable energies, weather prediction becomes more important to electricity … markets. The weather-driven uncertainty of renewable forecast errors could have price increasing impacts. This research sets … weather types and their renewable production uncertainty is proved via empirical methods. Weather types are identified in …