Comparing the Hedging Effectiveness of Weather Derivatives Based on Remotely Sensed Vegetation Health Indices and Meteorological Indices
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DOI: 10.1175/wcas-d-17-0127.1
Abstract: Weather derivatives are considered a promising agricultural risk management tool. Station-based meteorological indices typically provide the data underlying these instruments. However, the main shortcoming of these weather derivatives is an imperfect correlation between the weather… read more here.
Keywords: index; vegetation health; weather derivatives; weather ... See more keywords
Weather Derivatives and the Market Price of Risk
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DOI: 10.31390/josa.1.3.07
Abstract: Weather derivatives are becoming prominent features in multiasset class portfolios of alternative risk. The pricing of these securities is nonetheless challenging since it requires an incomplete market framework. We discuss pricing formulas for temperature-based weather… read more here.
Keywords: market price; price risk; risk; weather derivatives ... See more keywords