Spreadsheet: mark_taylor__24725__ClickInTradingProducts
Sheet: Weather

Short Description Boxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | FOR OPTIONS
Weather |  | Underlying Climatic Condition |  | Location & Station IWMO |  | Term |  | Transaction Unit |  | [NAME] (text box) |  | Payout per Unit |  | Maximum Payout Limit |  | Currency |  | Option Type |  | Option Strike in Transaction Units
Swap |  | Temperature |  | London Heathrow IWMO 37720 |  | Q3&Q4 1999 |  | HDD |  | 18C |  |  |  |  |  | USD |  | Call
Option |  | Precipitation |  | Oslo NMO 18700 |  | Q1-2000 |  | CDD |  | 20C |  |  |  |  |  | EUR |  | Put
 |  | Snow |  |  |  | Q2-2000 |  | mm - for Precip |  | Average Daily Wind 12m/sec |  |  |  |  |  | GBP |  | [NAME]
 |  | Wind |  |  |  | Q3-2000 |  | m - for Snow |  | Sunlight 6 hrs/day |  |  |  |  |  |  |  | Contingent (more info in the long description)
 |  | [NAME] |  |  |  | Q4-2000 |  | m/sec - for Wind Speed |  |  |  |  |  |  |  |  |  | Collar
 |  | Sunlight Hours |  |  |  |  |  | hrs/day - for Sunlight |  |  |  |  |  |  |  |  |  | Strangle
 |  | Humidity |  |  |  |  |  | % - for humidity |  |  |  |  |  |  |  |  |  | Straddle
 |  | Percieved Temp.(eg. Temp + Humidity)
Note: | 1.  [NAME] and [NAME] can be either on a Premium or a Stike => on the price screen it should be specified whether it is a Strike or a Premium.
 | 2.  Confirm with Houston complexity of their deals, i.e majority of transactions are taylored to the particular customer needs and are hard to standardise for online trading.
 | 3.  It takes approx. 10-30 min to rebalance weather products portfolio. Because of the security and complexity it must be run manually at the moment =>
 | To trade on line it may be suggested for ex. to spesify a number of trades that can be done before Enron trader has to rebalance weather portfolio and put a new price.
Long Descriptions
Temperature | Average daily temperature, quoted in oC and calculated as (daily [NAME] daily min)/2, where day is defined as above
Precipitation | Average daily amount in mm/day, where the day is defined as above
 | Full clarification to follow
Snow | Depth of snow in cm taken at 0900 daily, or as required
Wind | Average daily wind speed in m/sec, calculated from the 24 measurements taken hourly each day
Cloud cover | Average daily amount in oktas, calculated from the 24 hourly measurements taken each day
Oktas | Each okta represents one eighth of the sky covered by clouds. This measurement is taken from ground level.
Sunlight hours | total hours per day of sunshine
Humidity | Average percentage moisture content in the air
Perceived temperature | Full clarification to follow
IWMO | Unique station identification number as defined by the World Meteorological Organisation (WMO)
HDD | Cumulative number of heating degree days (HDD) over the term of the contract. One HDD is defined as the difference between
 | the reference base temperature and the average daily temperature, only when this is a positive number
CDD | Cumulative number of cooling degree days (CDD) over the term of the contract. One CDD is defined as the difference between
 | the average daily temperature and the reference base temperature, only when this is a positive number
Contingent Options | Inter-dependant options, full details of combinations are available from the Weather Desk