Weather Derivative
Weather derivatives are financial instruments that can be used by organizations or individuals as part of a risk management strategy to reduce risk associated with adverse or unexpected weather conditions. The difference from other derivatives is that the underlying asset (rain/temperature/snow) has no direct value to price the weather derivative. See Exotic derivatives.
Read more about Weather Derivative: Overview of Uses, History, Valuation, Further Reading
Famous quotes containing the words weather and/or derivative:
“And there could I marvel my birthday
Away but the weather turned around. And the true
Joy of the long dead child sang burning
In the sun.”
—Dylan Thomas (1914–1953)
“When we say “science” we can either mean any manipulation of the inventive and organizing power of the human intellect: or we can mean such an extremely different thing as the religion of science the vulgarized derivative from this pure activity manipulated by a sort of priestcraft into a great religious and political weapon.”
—Wyndham Lewis (1882–1957)