. -- Weather forecasting ; weather risk ; price forecasting ; financial markets ; temperature futures ; CME …In usual pricing approaches for weather derivatives, forward-looking information such as meteorological weather … forecasts is not considered. Thus, important knowledge used by market participants is ignored in theory. By extending a standard …

. -- Weather derivatives ; seasonal variation ; temperature ; risk premia …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 …

In periods of unusual weather, forecasters face a problem of interpreting economic data: Which part goes back to the … underlying economic trend and which part arises from a special weather effect? In this paper, we discuss ways to disentangle … weather-related from business cycle-related influences on economic indicators. We find a significant influence of weather …

Many companies depend on weather conditions, so they require reliable weather forecasts for production planning or risk … hedging. In this article, we propose a new way of gaining weather forecasts by exploiting the forward-looking information … included in the market prices of weather derivatives traded at the Chicago Mercantile Exchange (CME). For this purpose, the CME …