Niederschlagsderivate

Thomas Heidorn and Alexandra Trautmann

No 69, Frankfurt School - Working Paper Series from Frankfurt School of Finance and Management

Abstract: Some traders estimate precipitation derivatives to have a potential which increases even that of temperature derivatives. Precipitation derivatives can be used both for hedging and marketing purposes for a diverse number of possible end users. However, the complex way of measuring precipitation, the lack of qualitative data and the feature of precipitation as being locally and timely variable make it necessary to develop highly individual contracts to keep the basis risk low.

Keywords: Precipitation derivatives; weather derivatives; weather risk management; hedging; base risk; liquidity; precipitation variability (search for similar items in EconPapers)
JEL-codes: G19 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:fsfmwp:69

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