A primer on weather derivatives
Barrieu, P.
& Scaillet, O.
(2010).
A primer on weather derivatives.
In
Filar, J. A. & Haurie, A.
(Eds.),
Uncertainty and Environmental Decision Making: a Handbook of Research and Best Practice
(pp. 155-176).
Springer Berlin / Heidelberg.
& Scaillet, O.
(2010).
A primer on weather derivatives.
In
Filar, J. A. & Haurie, A.
(Eds.),
Uncertainty and Environmental Decision Making: a Handbook of Research and Best Practice
(pp. 155-176).
Springer Berlin / Heidelberg.
We give a short introduction to weather derivatives. We discuss what they are made for. We describe the markets on which they are exchanged, and how they are used to promote agricultural risk transfer in developing countries via the World Bank program. We also treat some specific issues such as basis risk, pricing and design.