Faculty Advisor

Nikitina, Svetlana

Center

Russia

Abstract

This project proposes the use of weather derivatives, a type of financial instrument with a payout based on weather conditions, as a method for Russian farmers to hedge against daily temperature fluctuations. We created a weather derivative simulation tool in Microsoft Excel that calculates the effect of temperature on crop yield and then analyzes how the return of weather derivatives can potentially compensate for crop loss. Based on this tool, we developed a series of recommendations to help implement this system of protection with real users.

Publisher

Worcester Polytechnic Institute

Date Accepted

October 2017

Project Type

Interactive Qualifying Project

Accessibility

Unrestricted

Advisor Department

Humanities and Arts

Project Center

Russia

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