investors began to look at volatility from a different angle. It happened due to emergence of a market for new derivative …Traditionally volatility is viewed as a measure of variability, or risk, of an underlying asset. However recently … instruments - variance swaps. In this paper first we introduse the general idea of the volatility trading using variance swaps …

. The weather derivative market is therefore incomplete. This paper implements a pricing methodology for weather derivatives …

. The regression residuals of the temperature show a clear seasonal variation and the volatility term structure of CAT … weather derivative market does not exist. The findings support theoretical results of reverse relation between MPR and …

. The spatial derivative price distribution involves a risk premium. We examine functional principal components of …