Weather derivatives

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.

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
 

Our Labels

Entrima and Market Abuse Centre (MAC) are the two labels we operate to provide learning services for professionals in the commodity & energy markets.
 
 


Content & Context

Entrima’s mission is to transfer knowledge regarding the business, controls & operations of parties in (or relating to) the wholesale markets.

www.entrima.org


Conduct & Culture

MAC’s mission is to facilitate the prevention & detection of misconduct and to foster proper behaviour in organisations. This is achieved via training, periodic updates and increased awareness.

www.marketabusecentre.com