University of Hertfordshire

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İklim Türevleri ve Fiyatlandırılması

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Translated title of the contributionWeather Derivatives and Their Pricing
Original languageOther
Pages (from-to)p. 55-66
JournalJournal of Accounting and Finance, Association of Accounting and Finance Academicians (AAFA) Publications
IssueNo.27
Publication statusPublished - Jul 2005

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.

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