Learning Platform - "Markets & Trading"
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:
- Hedging tools
- History
- Insurance versus hedging
- Cash settlement
- Market participants
- Temperature derivatives
- Temperature derivatives – HDD
- Temperature derivatives – CDD
- Temperature derivatives – CAT
- Temperature derivatives – Strip
- Temperature derivatives – Application
- Temperature derivatives – Frost contracts
- Precipitation derivatives – Snow contracts
- Precipitation derivatives – Rain contracts
- Wind derivatives
- Wind derivatives – Futures
- Wind derivatives – Options
- Wind derivatives – Swaps
- Wind derivatives – Hurricane instruments
- Wind derivatives – Hurricane instr. – CHI
- Wind derivatives – Hurricane instr. – Landfall
- Weather markets – Market liquidity
- Basis risk
- Example: Applying HDD derivatives
This course also includes examination and certification.
