Weather Derivatives

Modeling and Pricing Weather-Related Risk

  • Antonis Alexandridis K.
  • Achilleas D. Zapranis

Table of contents

  1. Front Matter
    Pages i-xv
  2. Antonis K. Alexandridis, Achilleas D. Zapranis
    Pages 1-20
  3. Antonis K. Alexandridis, Achilleas D. Zapranis
    Pages 21-35
  4. Antonis K. Alexandridis, Achilleas D. Zapranis
    Pages 37-54
  5. Antonis K. Alexandridis, Achilleas D. Zapranis
    Pages 55-85
  6. Antonis K. Alexandridis, Achilleas D. Zapranis
    Pages 87-164
  7. Antonis K. Alexandridis, Achilleas D. Zapranis
    Pages 165-190
  8. Antonis K. Alexandridis, Achilleas D. Zapranis
    Pages 191-201
  9. Antonis K. Alexandridis, Achilleas D. Zapranis
    Pages 203-215
  10. Antonis K. Alexandridis, Achilleas D. Zapranis
    Pages 217-239
  11. Antonis K. Alexandridis, Achilleas D. Zapranis
    Pages 241-270
  12. Back Matter
    Pages 271-300

About this book

Introduction

Weather derivatives are financial instruments that can be used by organizations or individuals as part of a risk management strategy to minimize risk associated with adverse or unexpected weather conditions. Just as traditional contingent claims, a weather derivative has an underlying measure, such as: rainfall, wind, snow or temperature.  Nearly $1 trillion of the U.S. economy is directly exposed to weather-related risk.  More precisely, almost 30% of the U.S. economy and 70% of U.S. companies are affected by weather.  The purpose of this monograph is to conduct an in-depth analysis of financial products that are traded in the weather market. Presenting a pricing and modeling approach for weather derivatives written on various underlying weather variables will help students, researchers, and industry professionals accurately price weather derivatives, and will provide strategies for effectively hedging against weather-related risk.  This book will link the mathematical aspects of the modeling procedure of weather variables to the financial markets and the pricing of weather derivatives.  Very little has been published in the area of weather risk, and this volume will appeal to graduate-level students and researchers studying financial mathematics, risk management, or energy finance, in addition to investors and professionals within the financial services industry.

Keywords

Derivative Modeling Financial Markets Risk Management Weather Derivatives Weather Variables

Authors and affiliations

  • Antonis Alexandridis K.
    • 1
  • Achilleas D. Zapranis
    • 2
  1. 1.ThessalonikiGreece
  2. 2.ThessalonikiGreece

Bibliographic information

  • DOI https://doi.org/10.1007/978-1-4614-6071-8
  • Copyright Information Springer Science+Business Media New York 2013
  • Publisher Name Springer, New York, NY
  • eBook Packages Business and Economics
  • Print ISBN 978-1-4614-6070-1
  • Online ISBN 978-1-4614-6071-8
  • About this book