Since their first introduction in 1996, weather derivatives have been a topic of discussion. The ongoing climate change …

industry. I have discovered that a weather derivative useful for this task is similar to a cooling degree day (CDD) contract in … weather derivatives, mainly developed for the energy industry, can also be useful to cover temperature risk for the wine … the energy industry, and that a possible hedging strategy is a straddle consisting of combination of a call and a put on a …

In this paper, a new form of weather derivative contract, namely the climatic zone-based growth degree-day (GDD … reduce the model dimension of multi-regional temperature-based weather derivatives pricing. Since the proposed contract … serves as a risk management tool for all of the cities in the same climatic zone, we compare the risk hedging power between …

Weather derivatives are contingent claims with payoff based on a pre-specified weather index. Firms exposed to weather … risk can transfer it to financial markets via weather derivatives. We develop a utility-based model for pricing baskets of … weather derivatives under default risk on the issuer side in over-the-counter markets. In our model, agents maximise the …