Research Article
Modeling Drought Option Contracts
Table 3
Option price comparison for months 4–6.
| | 1951–2006 | 1967–2006 | 1977–2006 | 1987–2006 |
| Historical Burn Analysis | 0.1963 | 0.1927 | 0.1686 | 0.1505 | Index Value—Ext. Val. Distribution | 0.1928 | 0.1897 | 0.1647 | 0.1522 | Stochastic Simulation | 0.1616 | 0.1676 | 0.1520 | 0.1447 |
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