Title
Document Type
Blog Post
Publication Date
8-29-2012
Contents
Most people are aware of stock options or futures contracts on commodities such as gold and oil. However, the derivatives market is very diverse, including such things as weather derivatives. With hurricane season upon us, you may want to do some research on hurricane futures and options (http://www.cmegroup.com/trading/weather/hurricanes/hurricane.html). Essentially, these contracts allow insurers to transfer risk to other parties, such as hedge funds. See the article here, CME Group.
Recommended Citation
Dolvin, Steven D., "Weather Derivatives" (2012). All Chapters. 39.
https://digitalcommons.butler.edu/jmdallchapters/39