Weather Derivatives – Origin, Types and Application
The number of companies that are exposed to the revenues loss risk caused by weather variability is still increasing. The businesses that are mostly exposed to weather risk are following: energy, agriculture, constructions and transport. That situation has initiated dynamic growth of weather derivat...
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| Format: | Article |
| Language: | English |
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VIZJA University
2008-03-01
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| Series: | Contemporary Economics |
| Online Access: | http://ce.vizja.pl/en/download-pdf/id/44 |
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| _version_ | 1849414445176979456 |
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| author | Piotr Binkowski |
| author_facet | Piotr Binkowski |
| author_sort | Piotr Binkowski |
| collection | DOAJ |
| description | The number of companies that are exposed to the revenues loss risk caused by weather variability is still increasing. The businesses that are mostly exposed to weather risk are following: energy, agriculture, constructions and transport. That situation has initiated dynamic growth of weather derivatives markets as well as the awareness of the weather risk among the market participants. Presently, the weather derivatives markets evaluate rapidly in all the mature economies: USA, Asia and Europe. Constructing weather derivatives relies on qu- antifying climate factors in the form of indexes, what is quite simple task, more difficultly can be gathering precise historical data of required climate factors. Taking into consideration so far development of derivatives ñ especially the financial derivatives based on different types of indexes ñ financial market has at disposal wide range of different types of proved derivatives (futures, forward, options, swaps), which can be successfully utilised on the weather-driven markets both for hedging weather risk and speculating. |
| format | Article |
| id | doaj-art-67a7cb2a8fbf4c10a74064f3e814ebfc |
| institution | Kabale University |
| issn | 2084-0845 |
| language | English |
| publishDate | 2008-03-01 |
| publisher | VIZJA University |
| record_format | Article |
| series | Contemporary Economics |
| spelling | doaj-art-67a7cb2a8fbf4c10a74064f3e814ebfc2025-08-20T03:33:50ZengVIZJA UniversityContemporary Economics2084-08452008-03-01211178Weather Derivatives – Origin, Types and ApplicationPiotr BinkowskiThe number of companies that are exposed to the revenues loss risk caused by weather variability is still increasing. The businesses that are mostly exposed to weather risk are following: energy, agriculture, constructions and transport. That situation has initiated dynamic growth of weather derivatives markets as well as the awareness of the weather risk among the market participants. Presently, the weather derivatives markets evaluate rapidly in all the mature economies: USA, Asia and Europe. Constructing weather derivatives relies on qu- antifying climate factors in the form of indexes, what is quite simple task, more difficultly can be gathering precise historical data of required climate factors. Taking into consideration so far development of derivatives ñ especially the financial derivatives based on different types of indexes ñ financial market has at disposal wide range of different types of proved derivatives (futures, forward, options, swaps), which can be successfully utilised on the weather-driven markets both for hedging weather risk and speculating.http://ce.vizja.pl/en/download-pdf/id/44 |
| spellingShingle | Piotr Binkowski Weather Derivatives – Origin, Types and Application Contemporary Economics |
| title | Weather Derivatives – Origin, Types and Application |
| title_full | Weather Derivatives – Origin, Types and Application |
| title_fullStr | Weather Derivatives – Origin, Types and Application |
| title_full_unstemmed | Weather Derivatives – Origin, Types and Application |
| title_short | Weather Derivatives – Origin, Types and Application |
| title_sort | weather derivatives origin types and application |
| url | http://ce.vizja.pl/en/download-pdf/id/44 |
| work_keys_str_mv | AT piotrbinkowski weatherderivativesorigintypesandapplication |