and magnitude of weather extremes, derivative contracts may potentially become a useful tool for hedging some weather …A new instrument for hedging weather risks has made its appearance in the financial arena. Trade in 'weather … weather derivatives is somehow related to anthropogenic climate change. Our tentative answer is positive. Since 'global …

interesting for investors and issuers of weather contracts to take advantages of geographic diversification, hedging effects and …Forecasting based pricing of Weather Derivatives (WDs) is a new approach in valuation of contingent claims on … nontradable underlyings. Standard techniques are based on historical weather data. Forward-looking information such as …

derivatives. Precipitation derivatives can be used both for hedging and marketing purposes for a diverse number of possible end …

weather derivative market does not exist. The findings support theoretical results of reverse relation between MPR and …Weather derivatives (WD) are different from most financial derivatives because the underlying weather cannot be traded … parameter of the associated equivalent martingale measures used to price and hedge weather futures/options in the market. The …

. The weather derivative market is therefore incomplete. This paper implements a pricing methodology for weather derivatives …Weather influences our daily lives and choices and has an enormous impact on cooperate revenues and earnings. Weather … derivatives differ from most derivatives in that the underlying weather cannot be traded and their market is relatively illiquid …

On the temperature derivative market, modeling temperature volatility is an important issue for pricing and hedging. In …

Due to dependency of energy demand on temperature, weather derivatives enable the effective hedging of temperature … related fluctuations. However, temperature varies in space and time and therefore the contingent weather derivatives also vary …. The spatial derivative price distribution involves a risk premium. We examine functional principal components of …

management the ETFs with negative leverage factors can also be applied for the hedge or cross hedge of a portfolio. These hedging … case that a bearish market is supposed, minimizing the variance of the hedge seems not to obtain better hedging results … return high leverage factors should not be used for hedging, due to the higher volatility and target-shortfall probability. …

Since the mid-nineties, agricultural economists discuss the suitability of "weather derivatives" as hedging instruments …, weather derivative markets for the agricultural sector are still in their infancy all-over the world. Some economists …. Others think that the low hedging effectiveness of (standardized and non-customized) weather contracts cripple the market …