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Cold Certificates


Certificate Aim Definition
Cold Day Certificate (Daily Average Temperature Index) Payout when there are above average Cold Days during the period. Under this Certificate, the Client will receive a fixed amount of [Payout] for each Cold Day after [Strike] of such days up to a maximum of [Maximum Payout] during the period from [Start Date] until [End Date] . A Cold Day is defined as a day on which the daily average temperature measured by the independent national meteorological station is below [Threshold] °C.
Frost Day Certificate (Daily Minimum Temperature Index) Payout when there are above average Frost Days during the period. Under this Certificate, the Client will receive a fixed amount of [Payout] for each Frost Day after [Strike] of such days up to a maximum of [Maximum Payout] during the period from [Start Date] until [End Date] . A Frost Day is defined as a day on which the daily minimum temperature measured by the independent national meteorological station is below [Threshold] °C.
CAT Put Certificate (Cumulative Daily Average Temperature Index) Payout when there are below average CAT during the period. (Payout for cold periods.) Under this Certificate, the Client will receive a fixed amount of [Payout] for every CAT that the CAT Index is below [Strike] CAT up to a maximum of [Maximum Payout] during the period from [Start Date] until [End Date] . The CAT Index is defined as the sum of the daily average temperatures measured by the independent national meteorological station.
HDD Call Certificate (Daily Average Temperature) Payout when there are above average HDD during the period. (Payout for cold periods.) Under this Certificate, the Client will receive a fixed amount of [Payout] for every Heating Degree Day (HDD) above [Strike] up to a maximum of [Maximum Payout] during the period from [Start Date] until [End Date] . HDD are calculated by adding up daily HDD measured by the independent national meteorological station. The daily HDD values are calculated as the difference between the [Threshold] °C and the daily average temperature where the daily average temperature is below the [Threshold] °C.
 

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