Abstract
Many companies are affected by the weather. Examples include domestic energy supply companies that sell less energy in a warm winter, building companies that lose working days due to rain and electricity companies that sell less electricity in a cool summer because of the reduced demand for air conditioning. Weather derivatives are financial contracts that allow companies to insure themselves against the loses they can incur as a result of such weather fluctuations. The market for weather derivatives was launched in the late 90’s. A number of different types of company act as participants in this market, including energy companies, banks and insurance companies.
| Translated title of the contribution | Weather Derivatives and Their Pricing |
|---|---|
| Original language | Other |
| Pages (from-to) | p. 55-66 |
| Journal | Journal of Accounting and Finance, Association of Accounting and Finance Academicians (AAFA) Publications |
| Issue number | No.27 |
| Publication status | Published - Jul 2005 |
Keywords
- Weather Derivatives, Pricing Weather Derivatives, Derivative Securities