Patent ID: 6418417
Filing Date: 2002-07-09
Classification: G06Q

Abstract:
A computer implemented method for valuating a weather-based financial instrument, comprising the steps of:(1) receiving information representative of a start date and maturity date for the financial instrument; (2) receiving information representative of a geographic region to be covered by the financial instrument; (3) receiving information representative of a weather condition that the financial instrument will derive its value from; (4) receiving information representative of a risk-free rate; (5) receiving historical weather information, relating to said weather condition, for said geographic region during the period between said start date and said maturity date; (6) receiving future weather information, relating to said weather condition, for said geographic region during the period between said start date and said maturity date; and (7) obtaining a value of the financial instrument by applying a pricing model using said historical weather information, said future weather information, and said risk-free rate.