Question
1.1 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
1.1 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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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
