Multiple Choice
Which of the following is a common use of weather derivatives?
A) Hedge the volume of electricity that will be demanded by customers in the summer
B) Hedge the price of oil that must be purchased in the winter
C) Hedge the price of electricity that must be purchased in the summer
D) Hedge the price and volume of gas that must be purchased for heating in the winter
Correct Answer:

Verified
Correct Answer:
Verified
Q2: Which of the following typically has the
Q3: Which of the following are least likely
Q4: An August CDD weather option is offered
Q5: Which of the following is NOT true
Q6: Which of the following is the basis
Q8: On a certain day the highest temperature
Q9: Which of the following describes the period
Q10: Where are oil, gas, and electricity derivatives
Q11: Which of the following describes the period
Q12: When a reinsurer covers the layer of