Benefits of Weather Derivatives
2-4. An Example – Temperature Derivatives
1) Measuring daily index value
HDD(Heating Degree Day) = Max(0, B-X)
CDD(Cooling Degree Day) = Max(0, X-B)
X: a day’s average temperature, B: base temperature(65oF)
Exotic Derivatives usually refers to more
complex and unusual derivative contracts that depend on the value of some specific underly
II. What Are Credit Derivatives?
Derivatives are defined as the exchange or contract which has economic values deriving from the reference assets or index. According to their types, there are overall forward, future, option, and swap. Derivatives are the financial derivatives, which are enabled to trade in the market while consisting of separating the credit risk only to the holder of basic p
Regulation of IT Risk
In order to regulate the IT risk, governments work to address threat to computer crime. For example, representatives of 29 countries - including Canada, Japan and the U.S. – signed the Council of Europe Cybercrime convention in 2001. The convention deals with substantive and procedural cybercrime law. The substantive defines the following activities as crimina
Ⅰ. FTA(Free Trade Area)
(1)The Definition of FTA
Free Trade Area is a designated group of countries that have agreed to eliminate tariffs, quotas and preferences on most (if not all) goods between them.
It can be considered the second stage of economic integration. the stage of economic integration
Economic integration is a term used to describe how different aspects between economi
benefits at the margin.
경제학자들은 그들의 개인주의적 접근방식 때문에, 사회적 문제들을 해결하기 위해 시장에 의지하는 경향이 있다. 문제를 분석하는데 있어서, 경제학자들은 선택할 수 있는 조건들을 명확화 하고 비용을 살펴보는데 엄청난 정도의 시간을 들인다. 대체 가능성을 조사하는데 있어서,