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Explain intuitively what the weather futures are? What are the assets underlying weather futures and how do theyreflect the weather risk? Summarise the main weather

  1. Explain intuitively what the weather futures are?
  2. What are the assets underlying weather futures and how do theyreflect the weather risk?
  3. Summarise the main weather futures offered by CME Group. Foreach contract identify the underlying asset and explain how thefutures price is determined.
  4. Who, in your opinion, would be interested in weather futuresand for what purpose these products could be used?
  5. Given the changes in climate, what is your view on the furtherdevelopment of the weather derivatives?

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