Talk:Weather derivative

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Confusing example[edit]

I found the description of HDD misleading - "for the November to March period, for each day where the temperature falls below 18 degrees Celsius keep a cumulative count" implies that you are keeping a cumulative count of the days, but the cumulative count would be of the degrees each daily temp was below 18, and the strike would be the number of degrees, rather than the number of days. In the following paragraph, the example strike is 320 for the month of August, which clearly is degrees rather than days. Have modified the second paragraph to clarify this.Nperrin 14:44, 7 October 2007 (UTC)[reply]

External links modified[edit]

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Added archive https://web.archive.org/20130113221616/http://www.cmegroup.com/trading/weather/files/WeatherRisk_CEO.pdf to http://www.cmegroup.com/trading/weather/files/WeatherRisk_CEO.pdf

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