Design of rainfall index option and application in agricultural meteorological risk: based on Harbin city

Rainfall index option is a new type of risk management tool that can eliminate income uncertainty of some industries. These industries are sensitive to rainfall. Essentially,rainfall index option apply option theory to rainfall meteorological risk management. The design of rainfal index option can enhance the level of rainfall meteorological risk management in agriculture. Using the rainfall index option can stabilize earnings of peasants and promote agricultural development. Based on diversified literatures about rainfall index derivatives,this paper design rainfal index option and verify the feasibility of rainfal index option in the rainfall meteorological risk management.