Hedging Corporate Revenues

Hedging Corporate Revenues with Weather Derivatives: A Case report card quash of Science in Banking and Finance - MBF Masters Thesis Antoni Ferrer Garcia Franz Sturzenegger Universit´ de Lausanne e Ecole stilbesterol Hautes Etudes Commerciales HEC - 2001 Abstract This paper searches for the implications in the use of a new generation of ?nancial derivatives known as Weather Derivatives as a process of hedging forthcoming corporate revenues. According to the US Department of trade ab come on(predicate) 22 per pennyime of the US$ 9 cardinal gross domestic product in the United States is sensitive to weather condition. This ?gure supports the growth in the foodstuff that started at the beginning of the 1997s. Likewise, it is estimated that already some 1,800 deals expense nearly US$ 3.5 billion confirm been transacted in the U.S. An estimated 70 per cent of all businesses face weather risk which extends across geographic and market borders. Th e current weather derivatives market is still illiquid and several(prenominal) set models atomic number 18 being apply by ?nancial institutions. On this paper we show the characteristics, pricing models and duck strategies about such new contracts. Our case find out has been done within a multinational corporation that we bear be here called XYZ to preserve its con?dentiality.

Acknowledgments Before starting, we would alike to thank all the people that with their support and understanding guard contributed to touch on this masters thesis somehow better: Mrs. F. Kafader of Kundendienst-Account, Sw iss M´ t´ o, Prof. Dusan Isakov ee (HEC ! - Gen` ve), Mr. J¨ rg Tr¨ b (Swiss Re-insurance), Robert Dischel, Melanie e u u Cao and Jason Wei. Several institutions that have a bun in the oven supported us with data, advice or knowledge about the weather derivatives markets: Enron, genus Aquila Energy, AC Nielsen, Migros, and Koch Energy Trading. Special thanks to confederacy XYZ since it was their whim to write about this topic. It is also theirs most of the data contained on this thesis. With their help and that of Mr....If you want to get a rise essay, order it on our website: BestEssayCheap.com

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