Are you ready for weather derivatives?
Trot out all the clichés about choppy trading and whatnot. The weather derivatives market seems to be taking off. At the Chicago Mercantile Exchange, 328,000 contracts were traded between January and April, up from just 4,200 a year earlier. Overall, volume has increased roughly tenfold to $40 billion, amid anxiety about the upcoming hurricane season. These are more prop bets than anything. As always, there's a fine line between hedging and gambling.
> Here's the New York Post article.
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