Case summary – Enron Corporation’s Weather Derivatives Steve Haik‚ Dan Sleker and Bas van Bellegem – March 2003 Background In October Mary Watts‚ CFO of Pacific Northwest Electric (PNW) reviewed the forward plan for PNW’s 200-2001 season. PNW’s has been experiencing nearly no EPS growth since 1995 due to deregulation and warmer-than-average winter climate. The stock price had suffered accordingly‚ but there maybe a way to hedge the weather risk via a new “weather derivative” being proposed by Enron’s
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HOW WEATHER EFFECTS PEOPLE How weather effects peoples lives and activities. Weather‚ is the day to day change in conditions including the changes in the atmosphere‚ these changes include temperature‚ levels of precipitation‚ wind speed‚ wind direction and the change in air pressure. These measurements are usually taken and recorded at least once a day. Weather is the day-to-day changes in Earths atmospheric conditions. Climate‚ is the average conditions for an area or country recorded over a
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How Business Sustainability changed me: Taking Business Sustainability course has changed me on a personal level. I’ve never had a deep connection with nature. As a kid I have spent many family vacations in the middle of a forest because of my father’s fascination with his job (He is a retired forest engineer/carried out forestry research). To be honest‚ I never really understood his relationship with trees and nature. Now I value nature more. I appreciate environment more. I acknowledge that
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the ways in which soldiers fill their time when they are not fighting. Yet Hemingway’s realistic approach to his subject does not rule out the use of many time-honored literary devices. For instance‚ weather is to this day a fundamental component of the war experience. Hemingway depicts weather realistically in A Farewell to Arms‚ but he uses it for symbolic purposes as well. Rain‚ often equated with life and growth‚ stands for death in this novel‚ and snow symbolizes hope: an entirely original
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The Effects of Weather on Our Mood Often we hear people talking about how weather affects their activities and eventually their moods. We do not need to be meteorologist nor psychologist to realize that there is a link between weather and mood. With prevalent studies and valuable research‚ many seem to think that the link is merely the fact that weather gives people insight into the views about life and how to understand them. Researchers found that the two types of important variables to determine
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Lesson Type: Vocabulary and Grammar Subject: What is the weather like today? Lesson objective: Students identifying and describing the weather Assumptions: Ss know basic vocabulary: weather‚ temperature‚ degrees‚ cold‚ warm‚ snow‚ storm‚ etc. STRATEGY 1 - PRESENTATION Interaction Patterns: T>S‚ S>T Timing: 20 min Purpose of Procedure: To interest students‚ to learn the vocabulary Materials needed: Pictures with different weathers‚ stickies with adjectives: cloudy‚ cold‚ foggy‚ freezing
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Helium Weather Balloons A weather balloon is a scientific instrument used by meteorologists to measure the activity of the world’s weather. Weather balloons are sent into the air every day‚ all over the world; they are sent up at the same time‚ and they are used to measure a variety of atmospheric pressures‚ temperatures‚ and wind rates. The data collected by weather balloons is saved and transmitted by the radiosonde. Sensors in the radiosonde record data and use a radio transmitter to send
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1. Explain how observed teleconnection patterns can help in the preparation of a seasonal weather forecast. Climate teleconnection is used for long rang climate prediction. Being able to forecast seasonal weather helps the US energy market. It allows the US energy market to figure out the supply and demand for the season.”Long-range climate prediction has grown in importance for the energy industry in recent years. Risk managers‚ economists‚ and engineers all require a “heads up” future view of
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of the following regions would you expect to have the most tornadoes in the winter? A.northern Great Plains. B.Oklahoma. C.southern Gulf States. D.southern Great Plains. Answer Key: C Question 4 of 9 10.0/ 10.0 Points In a region where severe thunderstorms with tornadoes are forming‚ one would not expect to observe A.a dry tongue of cold air between the 700 and 500 mb levels. B.moist warm air moving north at about the 850 mb level. C.the polar jet stream above the region. D.a
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The current headlines regarding “extreme weather events” occurring around the world and here in America left a curiosity about the history and technology used to forecast the Earth’s weather. Around the world meteorologists use technology such as satellites‚ infrared‚ radio‚ and radar transmissions‚ to help determine the most accurate forecast possible. However‚ even with the most advanced technology available‚ no predication is 100% accurate. Captain Robert Fitzroy of Great Britain started a forecasting
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