Modeling Temperature and Pricing Weather Derivatives Based on Temperature

Table 5

values of parameters for HDD calculations.

City	A	B	C	Phase	Gamma_0	Gamma_1	Fast_Mean	Slow_Mean
Ankara	0	0	0	0	NS	0.00263	0.1609	0
Beijing	0	0	0	0	NS	0.0082	0.3174	0.02142
Cairo	0	0	0	0	NS	NS	0.0879	0
Chicago	0	NS	0	0	0	0	0	0
Dallas	0	0	0	0	NS	0	0	0
Istanbul	0	0	0	0	NS	NS	0.1021	0
Los Angeles	0	0	0	0	NS	NS	0.07382	0
New York	0	<0.001	0	0	NS	<0.001	0.2038	0
Paris	0	0	0	0	NS	<0.01	0.8557	0.01075
Sydney	0	0	0	0	NS	<0.05	0	0
Tokyo	0	0	0	0	NS	NS	NA	NA
Washington	0	<0.05	0	0	NS	0	0	0

NS: not statistically significant.
NA: not available.