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:
“This is the weather the shepherd shuns,
And so do I;
When beeches drip in browns and duns,
And thresh, and ply;”
—Thomas Hardy (1840–1928)
“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)