weather derivative

Definition of "weather derivative"
  1. A financial instrument that derives its value from a particular weather condition, providing coverage against potential loss due to fluctuating weather patterns
How to use "weather derivative" in a sentence
  1. The gas company used a weather derivative to protect its business against an unusually mild winter.
  2. Farmers can use weather derivatives to safeguard their crops against excessively rainy or dry seasons.
  3. An energy provider may purchase a weather derivative to manage the risk of sudden changes in electricity demand due to weather variations.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z