Hedging Yield with Weather Derivatives: A Role for Options

Preprint OPEN
Manfredo, Mark R.; Richards, Timothy J.;
(2005)
  • Subject: Weather Derivatives, Forecast Encompassing, Composite Hedges, Risk and Uncertainty, Q14, G13,

While there are few risk management alternatives available to specialty crop growers, weather derivatives provide an important advancement. As with the use of any derivatives contract, the behavior of the basis will ultimately determine the net-hedged outcome. However, ... View more
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