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:
“When the weather is bad as it was yesterday, everybody, almost everybody, feels cross and gloomy. Our thin linen tents—about like a fish seine, the deep mud, the irregular mails, the never to-be-seen paymasters, and “the rest of mankind,” are growled about in “old-soldier” style. But a fine day like today has turned out brightens and cheers us all. We people in camp are merely big children, wayward and changeable.”
—Rutherford Birchard Hayes (1822–1893)
“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.”
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