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 … each location) that allows the incorporation of meteorological forecasts in the framework of WD pricing. We study weather …

contracts and distribute weather risk. While most derivative markets are complete and contingent climes replications are … the standard approach to weather derivative pricing …In recent years we witnessed a rapid growth of weather derivatives market. These derivatives are used to hedge energy …

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 … each location) that allows the incorporation of meteorological forecasts in the framework of WD pricing. We study weather …

inquire systematically as to whether it may prove useful from the vantage point of participants in the weather derivatives … forecasts, but also the long-horizon density forecasts of maximal relevance in weather derivatives contexts. We produce and … evaluate both, with some success. We conclude that additional inquiry into nonstructural weather forecasting methods will …