Patent ID: 7783544

Claim:
A computerized method of price setting throughout a substantially continuous ongoing natural process starting with a reported precursor event and culminating in a future natural peril landstrike, for the purchase of derivative securities interests predicting the eventual outcome of the future natural peril landstrike on one of a plurality of geographical areas, comprising: the derivative securities interests comprising a prediction of the eventual outcome of the future natural peril landstrike as a combined call on one geographical area predicted to be struck by the future natural peril landstrike and a put on all other geographical areas; providing a database containing a) historical precursor data collected from at least one historical precursor event leading to an historical natural peril landstrike, and b) first premiums to purchase a derivative securities interest predicting an eventual outcome of the future natural peril landstrike for the plurality of geographical areas, that are based at least in part upon a calculated probability predicting an outcome of the historical precursor data as the future natural peril landstrike; electronically making the first premiums available to prospective purchasers at a communication port, prior to an announcement of the reported precursor event; electronically receiving notification of the reported precursor event from an external and verifiable notification source; and responsive to receiving notification of the reported precursor event, and throughout an ongoing duration of the reported precursor event, making available to prospective purchasers via the communication port, a series of secondary premiums to purchase derivative securities interests predicting the eventual outcome of the future natural peril landstrike, and with initial secondary premiums in the series based at least in part on the first premiums.