Title :
Comparative study on weather derivatives and conventional financial derivatives
Author_Institution :
Sch. of Commerce, Chengdu Univ. of Inf. Technol., Chengdu, China
Abstract :
Weather derivatives are conjunct product of avoidance of weather risks and financial tools innovation. As a kind of financial derivative products, weather derivatives possess comment features of general financial derivatives, such as product forms, trading models, hedging function, etc. While due to the difference of basic assets that construct the derivatives, there are significant deferent points between the two others: both the risks they transferred and the pricing models and methods are different. In addition, market participators and the roles they play are also different.
Keywords :
financial management; pricing; financial derivative product; financial tools innovation; hedging function; pricing model; product forms; trading model; weather derivative; weather risk avoidance; Contracts; Educational institutions; Indexes; Meteorology; Pricing; Technological innovation; Uncertainty; financial derivatives; transfer risks; weather derivatives;
Conference_Titel :
Information Management, Innovation Management and Industrial Engineering (ICIII), 2012 International Conference on
Conference_Location :
Sanya
Print_ISBN :
978-1-4673-1932-4
DOI :
10.1109/ICIII.2012.6339732