Распитие напитков с одноклассниками
Одноклассник-трейдер, обращаясь к однокласснику-владельцу сети кафе:
Даже не знаю, меня больше вопрос или ответ удивляет, хехе.
Exactly, I meant that it is too expensive for a hedge.
If it is a business conditions insurance -- mathematical expectation for that kind of insurance to be paid has to be low.
It should be possible to buy a derivative on weather directly, then it would be hedging but the problem is that it is never perfect. The contract has to have a strike such as "average amount of rainfall for three months." Say, if it falls in the nights it shouldn't affect cafe business but can bring a profit.