AbstractSome traders estimate precipitation derivatives to have a potential which increases even that of temperature derivatives. Precipitation derivatives can be used both for hedging and marketing purposes for a diverse number of possible end users. However, the complex way of measuring precipitation, the lack of qualitative data and the feature of precipitation as being locally and timely variable make it necessary to develop highly individual contracts to keep the basis risk low. --
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Bibliographic InfoPaper provided by Frankfurt School of Finance and Management in its series Frankfurt School - Working Paper Series with number 69.
Date of creation: 2005
Date of revision:
Precipitation derivatives; weather derivatives; weather risk management; hedging; base risk; liquidity; precipitation variability;
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- Almer, Thomas & Heidorn, Thomas & Schmaltz, Christian, 2008. "The dynamics of short- and long-term CDS-spreads of banks," Frankfurt School - Working Paper Series 95, Frankfurt School of Finance and Management.
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