Two Below Zero Is a New Ski Resort in Colorado

Multiple Choice

Two Below Zero is a new ski resort in Colorado.Two Below Zero is concerned that an abnormally warm winter will prevent the accumulation of snow needed to have a profitable ski season.Two Below Zero purchased a contract that will pay Two Below Zero a lump sum payment if the daily high temperature exceeds 30 degrees for more than 12 days between January 1st and March 31st.The contract Two Below Zero purchased is called a(n)

A) catastrophe bond.
B) weather derivative.
C) interest rate swap.
D) convertible bond.