---
title: Pricing & Hedging of Temperature Derivatives with Memory
url: https://www.ml-quant.com/papers/ssrn/4698000/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4698000
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4698000
featured: 2024-01-23
citations: unknown
topic: Derivatives & Volatility
---


# Pricing & Hedging of Temperature Derivatives with Memory

A new temperature model based on generalized Langevin equations can predict the risk-neutral price dynamics of temperature derivatives, making it useful for hedging against unfavorable weather conditions, a paper suggests.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4698000
- Identifier: SSRN 4698000
- Released: 2022-12-27
- First featured: Quant Letter No. 34 (2024-01-23): https://www.ml-quant.com/issues/2024-01-23/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility

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