weather derivative
Definition
Contract whose value depends on the weather conditions such as rainfall or snowfall (precipitation), temperature, or damage or loss resulting from them. Weather derivative were pioneered by the now defunct US firm Enron energy corporation and traded first time in September 1997 between it and another US firm, Koch Industries.
weather derivative is in the Banking, Commerce & Finance, Disaster Planning & Risk Management, Investing and Securities & Futures Trading subjects.
weather derivative appears in the definition of the following term: degree day swap
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