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Invest in Hurricane Options â€“ A new website called Weather Risk Solutions is promising to let users buy options on where they think a hurricane might strike. The site is still in its beta stages, but the idea is modeled off of flood options which are used by investors as a way to insure their capital against floods.
For an example of how this works, lets look at the Galveston, Texas option. If you thought a hurricane might strike Galveston this year, you can purchase an option for $30.50. If unfortunately, a hurricane were to strike Galveston, you would be paid $997.40.
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