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Weather Derivative

A financial instrument (derivative) which is used to reduce or transfer the risk associated with unfavorable or unexpected weather conditions....

    CDD Swap

    A degree day swap that combines a call and put option with the same strike CDD and on the same...

      CDD Option

      A weather derivative (specifically a degree day option) that gives the holder the right, without the obligation, to trade (buy...

        CDD

        It stands for cooling degree days; a term that refers to the maximum of zero and the amount by which...

          HDD Option

          A weather derivative (specifically a degree day option) that gives the holder the right, without the obligation, to trade (buy...

            HDD Swap

            It stands for heating degree days swap; a degree day swap that combines a call and put option with the...

              HDD

              It stands for heating degree days, a term that refers to the maximum of zero or the amount by which...

                Degree Day Swap

                A weather derivative (originally introduced by US firm Enron Energy Corporation in 1997) that is used for hedging purposes, where...

                  Weather Swap

                  A weather derivative that involves a nonfinancial or nonphysical asset, literally a weather index, and whereby one counterparty is committed to make...