Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/27826
Authors: 
Heidorn, Thomas
Trautmann, Alexandra
Year of Publication: 
2005
Series/Report no.: 
Arbeitsberichte der Hochschule für Bankwirtschaft 69
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.
Subjects: 
Precipitation derivatives
weather derivatives
weather risk management
hedging
base risk
liquidity
precipitation variability
JEL: 
G19
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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