Heating degree-day and cooling degree-day futures contracts make payments based on whether the temperature is abnormally hot
Question:
a. Soft-drink manufacturers.
b. Ski-resort operators.
c. Electric utilities.
d. Amusement park operators. Discuss.
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This problem offers different scenarios in which some companies may have an interest to hedge their exposure to temperatures that are detrimental to t...View the full answer
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