Weather derivatives and hedging the weather risks
The article focuses on weather derivatives with the aim to present the substance of weather derivatives as relatively new financial products and to discuss their advantages and disadvantages when being used as a tool to diminish the loses coming from these suboptimal weather conditions. We conclude...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Czech Academy of Agricultural Sciences
2014-07-01
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| Series: | Agricultural Economics (AGRICECON) |
| Subjects: | |
| Online Access: | https://agricecon.agriculturejournals.cz/artkey/age-201407-0003_weather-derivatives-and-hedging-the-weather-risks.php |
| _version_ | 1797899990815735808 |
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| author | Josef TAUŠER Radek ČAJKA |
| author_facet | Josef TAUŠER Radek ČAJKA |
| author_sort | Josef TAUŠER |
| collection | DOAJ |
| description | The article focuses on weather derivatives with the aim to present the substance of weather derivatives as relatively new financial products and to discuss their advantages and disadvantages when being used as a tool to diminish the loses coming from these suboptimal weather conditions. We conclude with the findings that weather derivatives have a great potential to develop further. They provide an opportunity to hedge against the suboptimal weather conditions at reasonable costs. However, the hedging effectiveness is the main issue to be analyzed in each specific business case. |
| first_indexed | 2024-04-10T08:38:51Z |
| format | Article |
| id | doaj.art-0464c4c77c5544d6976a6d2e2c7369b5 |
| institution | Directory Open Access Journal |
| issn | 0139-570X 1805-9295 |
| language | English |
| last_indexed | 2024-04-10T08:38:51Z |
| publishDate | 2014-07-01 |
| publisher | Czech Academy of Agricultural Sciences |
| record_format | Article |
| series | Agricultural Economics (AGRICECON) |
| spelling | doaj.art-0464c4c77c5544d6976a6d2e2c7369b52023-02-23T03:24:30ZengCzech Academy of Agricultural SciencesAgricultural Economics (AGRICECON)0139-570X1805-92952014-07-0160730931310.17221/11/2014-AGRICECONage-201407-0003Weather derivatives and hedging the weather risksJosef TAUŠER0Radek ČAJKA1Department of International Trade, Faculty of International Relations, University of Economics, Prague, Czech RepublicDepartment of International Trade, Faculty of International Relations, University of Economics, Prague, Czech RepublicThe article focuses on weather derivatives with the aim to present the substance of weather derivatives as relatively new financial products and to discuss their advantages and disadvantages when being used as a tool to diminish the loses coming from these suboptimal weather conditions. We conclude with the findings that weather derivatives have a great potential to develop further. They provide an opportunity to hedge against the suboptimal weather conditions at reasonable costs. However, the hedging effectiveness is the main issue to be analyzed in each specific business case.https://agricecon.agriculturejournals.cz/artkey/age-201407-0003_weather-derivatives-and-hedging-the-weather-risks.phpweather-related riskshedgingweather derivatives |
| spellingShingle | Josef TAUŠER Radek ČAJKA Weather derivatives and hedging the weather risks Agricultural Economics (AGRICECON) weather-related risks hedging weather derivatives |
| title | Weather derivatives and hedging the weather risks |
| title_full | Weather derivatives and hedging the weather risks |
| title_fullStr | Weather derivatives and hedging the weather risks |
| title_full_unstemmed | Weather derivatives and hedging the weather risks |
| title_short | Weather derivatives and hedging the weather risks |
| title_sort | weather derivatives and hedging the weather risks |
| topic | weather-related risks hedging weather derivatives |
| url | https://agricecon.agriculturejournals.cz/artkey/age-201407-0003_weather-derivatives-and-hedging-the-weather-risks.php |
| work_keys_str_mv | AT joseftauser weatherderivativesandhedgingtheweatherrisks AT radekcajka weatherderivativesandhedgingtheweatherrisks |