Please find out an existing derivative security in the market which is related to climate change and/or environmental protection. Please explain why this security is a derivative, specify the underlying asset, expiration date, payoff function, and explain how this security can provide investors incentives to care more about climate change and/or environmental protection.

Alternatively, you can choose to design a derivative security which is related to climate change and/or environmental protection. Please explain why this security is a derivative, specify the underlying asset, expiration date, payoff function, and explain how this security can provide investors incentives to care more about climate change and/or environmental protection.

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One existing derivative security in the market that is related to climate change and environmental protection is carbon futures contracts These contra... View the full answer