Wind power generators face risks derived from fluctuations in market prices and variability production, generated by their high dependence on wind speed. These could be hedged using weather financial instruments. In this research, we design price an up-and-in European put barrier option Monte Carlo simulation. Under the existence of a structured market, producers may purchase to hedge fluctuati...

We derive a Put Option price associated with selling strategy of the underlying security in random interest rate environment. This extends pricing under linear investment from Black-Scholes setting to Hull-White stochastic model. As an application, Call for model is established. Our results address recent emergence developing dynamic strategies purpose reducing investor risk exposure European-t...

In this paper, after a review of the most common financial strategies and products that insurance companies use to hedge catastrophic risks, we study an option pricing model based on processes with jumps where event is captured by compound Poisson process negative jumps. Given importance catastrophe equity put options (CatEPuts) have in context, introduce approach provides not only theoretical ...