Heating degree-day and cooling degree-day futures contracts make payments based on whether the temperature is abnormally hot

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Heating degree-day and cooling degree-day futures contracts make payments based on whether the temperature is abnormally hot or cold. Explain why the following businesses might be interested in such a contract:
a. Soft-drink manufacturers.
b. Ski-resort operators.
c. Electric utilities.
d. Amusement park operators.
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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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