A recent development in futures and options markets are weather derivatives. One example is a weather futures contract based on a heating or cooling index. The settlement process is similar to an index future where cash is paid based upon the difference between the purchase level and the level of the index at expiration. Is this really gambling?

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The Answer of A recent development in futures and options markets are weather derivatives. One example is a weather futures contract based on a heating or cooling index. The settlement process is similar to an index future where cash is paid based upon the difference between the purchase level and the level of the index at expiration. Is this really gambling?

A Recent Development in Futures and Options Markets Are Weather