Economics · Financial Markets

Consider the following statements regarding weather derivatives used in risk management: I. Such financial instruments can help farmers or agribusinesses hedge against losses arising from adverse weather conditions. II. The underlying variables in these derivatives are weather parameters such as temperature or rainfall, which do not possess intrinsic market value like physical commodities. III. Measurable weather indicators such as temperature levels and precipitation amounts are commonly used as the reference indices for these contracts. How many of the statements given above are correct?