LS0328: The forecasters predicted that the city will be warm with 5 degree Fahrenheit temperature than the historical average. Using this information, the ABC Company anticipates that its revenues would be affected by that kind of weather. But the same company would most likely purchase an insurance policy for protection against damages caused by a flood and hurricane. Determine which kind of alternative to insurance products a company can opt for hedging against winters

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Question: The forecasters predicted that the city will be warm with 5 degree Fahrenheit temperature than the historical average. Using this information, the ABC Company anticipates that its revenues would be affected by that kind of weather. But the same company would most likely purchase an insurance policy for protection against damages caused by a flood and hurricane. Determine which kind of alternative to insurance products a company can opt for hedging against winters?


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