1. Heating degree-day and cooling degree-day futures contracts make payments based on whether the temperature is abnormally...
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1. Heating degree-day and cooling degree-day futures contracts make payments based on whether the temperature is abnormally hot or cold. Explain why the following businesses might be interested in such a contract:
a. Soft-drink manufacturers.
b. Ski-resort operators.
c. Electric utilities.
d. Amusement park operators.
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Related Book For 
Derivatives Markets Pearson New International Edition
ISBN: 978-1292021256
3rd Edition
Authors: Robert L. Mcdonald
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