We investigate the uncertainty dynamics surrounding extreme weather events through the lens of option and stock markets … by identifying market responses to the uncertainty regarding both potential hurricane landfall and subsequent economic … 5-10 percent, reflecting impact uncertainty. Using hurricane forecasts, we show that landfall uncertainty and potential …

We present a framework to identify market responses to the uncertainty regarding both potential hurricane landfall and …-lasting increases in implied volatility, reflecting impact uncertainty. Using hurricane forecasts, we find both landfall uncertainty and … potential impact uncertainty are reflected before landfall in the options of exposed firms. However, comparing ex ante expected …

We present a framework to identify market responses to the uncertainty regarding both potential hurricane landfall and …-lasting increases in implied volatility, reflecting impact uncertainty. Using hurricane forecasts, we find both landfall uncertainty and … potential impact uncertainty are reflected before landfall in the options of exposed firms. However, comparing ex ante expected …