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 …

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 …

. 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 …

fundamentals, focusing primarily on temperature. We show that when theory clearly identifies the fundamental, i.e., at temperatures …-thirds of the entire winter return variability occurs on these days. Moreover, when theory suggests no such relation, i.e., at … is good news for the theory and for market efficiency, not bad news. In terms of residual FCOJ return volatility, we also …