 |
| HYBRID COMMODITIES PRACTICE |
|||
| Introduction | |||
| Case Studies | |||
| Practice Disciplines | |||
|
|||
| Experience | |||
| Publications | |||
| On-Line RFP | |||
| Contact Us | |||
| The Practices of HYBRID CONSULTING GROUP, LTD. |
| HYBRID FINANCIAL MARKETS PRACTICE |
HYBRID COMMODITIES  PRACTICE |
| HYBRID EMERGING MARKETS PRACTICE |
| HYBRID E-COMMERCE PRACTICE |
HYBRID CONSULTING GROUP, LTD. HOME PAGE |
| HYBRID COMMODITIES PRACTICE / Practice Disciplines / Weather Derivatives |
|
Weather derivatives may be a novel product, but given a team of Hybrid Consultants, they will not pose novel valuation issues to your firm. The dynamics of temperature can be accurately characterized by our advanced statistical models, which serve as the basis for our weather derivative pricing models. Hybrid is refining our models to price basic weather derivative products, such as degree-day swaps and options. Since the payoffs on these products are frequently contingent on weather variables measured on multiple days, we are employing techniques developed for pricing Asian options to price these products.
Our advanced statistical models incorporate the relations between weather variables, power loads, and power prices, so those power market participants can employ these instruments as an effective hedge. The interplay of weather, loads, and prices can be integrated into a suite of pricing software, custom designed for a particular utility or region, thereby giving our clients a coherent, integrated power risk management program.
|
