I read an article about "Snow Contracts" which blew my mind.
The premise sounds rather bizarre -- a company purchases a contract and ... bets on the amount of snow that will fall -- or will not fall.
Cashing In On Snowstorms
It used to be that weather was viewed as something beyond people's control - an act of nature.
With "Snow Contracts", business people are attempting to lessen the financial impact of e.g. a severe snowfall, or even an entire winter season and the business interference they can cause.
For example, if a massive blizzard prohibits: 1) your manufacturing facility from making product, 2) your shipping company from delivering the product, or 3) people from driving to your store to buy the product (causing your sales to drop), you can now cover some or all of your losses. This presumes of course that you had the foresight to negotiate a "Snow Contract" a few months in advance...
This winter has been a pretty rough one for people in the US, as well as in other parts of the world.
With the availability of "Snow Contracts", CEOs will have one less excuse for company stockholders, should their business decline.
The premise sounds rather bizarre -- a company purchases a contract and ... bets on the amount of snow that will fall -- or will not fall.
Cashing In On Snowstorms
It used to be that weather was viewed as something beyond people's control - an act of nature.
With "Snow Contracts", business people are attempting to lessen the financial impact of e.g. a severe snowfall, or even an entire winter season and the business interference they can cause.
For example, if a massive blizzard prohibits: 1) your manufacturing facility from making product, 2) your shipping company from delivering the product, or 3) people from driving to your store to buy the product (causing your sales to drop), you can now cover some or all of your losses. This presumes of course that you had the foresight to negotiate a "Snow Contract" a few months in advance...
This winter has been a pretty rough one for people in the US, as well as in other parts of the world.
With the availability of "Snow Contracts", CEOs will have one less excuse for company stockholders, should their business decline.
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