Learning Platform - "Trade Compliance & Surveillance"

Course: Weather derivatives

About the online training programme

This course explains what weather derivatives are. It provides an overview of the fundamentals of these instruments and how they can be applied by companies to manage their weather exposures. Furthermore, quite some essentials are set out that make one understand how to control temperature, wind or precipitation risk. In addition, the settlement of these tools is given attention to and the reference indices that are used for this purpose.

Course Contents

This course covers the following video lessons:

1. Hedging tools
2. History
3. Insurance versus hedging
4. Cash settlement
5. Market participants
6. Temperature derivatives
7. Temperature derivatives – HDD
8. Temperature derivatives – CDD
9. Temperature derivatives – CAT
10. Temperature derivatives – Strip
11. Temperature derivatives – Application
12. Temperature derivatives – Frost contracts
13. Precipitation derivatives – Snow contracts
14. Precipitation derivatives – Rain contracts
15. Wind derivatives
16. Wind derivatives – Futures
17. Wind derivatives – Options
18. Wind derivatives – Swaps
19. Wind derivatives – Hurricane instruments
20. Wind derivatives – Hurricane instr. – CHI
21. Wind derivatives – Hurricane instr. – Landfall
22. Weather markets – Market liquidity
23. Basis risk
24. Example: Applying HDD derivatives

This course also includes examination and certification.