Research Article
Modeling Drought Option Contracts
Table 1
Option price comparison for months 1–12.
| | 1951–2006 | 1967–2006 | 1977–2006 | 1987–2006 |
| Historical Burn Analysis | 0.1764 | 0.1813 | 0.1799 | 0.1561 | Index Value—Weib. Distribution | 0.1769 | 0.1816 | 0.1805 | 0.1558 | Stochastic Simulation | 0.1666 | 0.1782 | 0.1739 | 0.1502 |
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