Weather futures!!!???

VingTsunKuen

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LOL!:LOL:

I just can not believe what i saw on CME website.You can trade weather futures!
What the hell is this thing about??
But just for your own sake,be sure to sell ALL thunderbolt futures before their expiration date because you would not like to have delivery of thunderbolts,that"s for sure!:LOL:

VTK
 
How are they priced?

I can see how they would be useful for hedging soft commodities prices.
 
How are they priced?

I can see how they would be useful for hedging soft commodities prices.

From memory (I can't be bothered to look this up) they effectively track the number of days below a certain temperature multiplied by the deviation from said temperature and then subtract the weighted days above that temperature * deviation. And you get that for a few cities (I think it might be airfields).
 
i fail to see what is funny about these?

That"s because you hang out too much whit gooses:cheesy:
Just kidding bro,don"t get mad on me!
Yeah,i guess they can be good for hedging grains and stuff.But it was kinda of funny to see that you can trade hurricane,snowfall,frost and temperature futures.
Cheers!
VTK
 
''Do you giggle at rudely shaped vegetables?''

Only on a Thursday.
 
Funny%20Shaped%20Vegetables.jpg
 
I hear contrarians are placing large bets on a new ice age.
Known as coffin trades.
 
This is what you get when you mess up whit temperature futures!:LOL:
 

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makes sense to me. i suspect the writers of the contract are currently unemplyed however. death to the structured product!
 
They should have celebrity futures so if a company is using celebrity endorsements they can hedge against a celebrity saying something racist on tv or prank calling an old man.
 
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