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Hot Certificates


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