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Define a weather related derivative security. Describe the type of company that would most likely use one...

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Finance

Definea weather related derivative security.

Describe the type of company that would most likely use one ofthese securities.
Select a company that would use a weather derivative andexplain how it will benefit from it.

Answer & Explanation Solved by verified expert
3.7 Ratings (473 Votes)
1 Weather is not just an environmental issue its also a big economic issue around the world Industries like agriculture entertainment travel energy etc are affected by it worldwide Weather derivative tends to make it a tradeable commodity Its a part of risk management strategy where an org tries to insulate    See Answer
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Definea weather related derivative security.Describe the type of company that would most likely use one ofthese securities.Select a company that would use a weather derivative andexplain how it will benefit from it.

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