Weather derivatives (WD) are different from most financial derivatives because the underlying weather cannot be traded and therefore cannot be replicated by other financial instruments. The market price of risk (MPR) is an important parameter of the associated equivalent martingale measures used...

Functional data analysis (FDA) has emerged as a new area of statistical research with a wide range of applications. In this paper, we propose some functional linear models in which both the response and the covariate variables are functions. These models enable to regularize curves observed over...

Weather derivatives (WD) are different from most financial derivatives because the underlying weather cannot be traded and therefore cannot be replicated by other financial instruments. The market price of risk (MPR) is an important parameter of the associated equivalent martingale measures used...