This paper describes intellectual property owned by Weather Risk Solutions LLC, which is protected by United States and international patents. Funding for the experimental market was provided by Weather Risk Solutions LLC.
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In a conventional weather-derivative market, buyers and sellers trade an asset whose value depends on whether or not a specific triggering event occurs, such as a freeze occurring before a certain date.
Most of these 78 outcomes correspond to hurricane landfall in individual coastal counties, but multiple counties are aggregated into a few larger regions on the mid- and northern Atlantic U.S. coastline because of lower hurricane frequencies there.