Probability & Derivatives

In my learned life, there are two subjects which deserve my veneration. Mathematical Probability and Financial Derivatives. However hard I try to construe them, shall never be able to go to bed with them!. Derivative trading is probably the toughest ( and most rewarding!) job out there.

Yesterday, a colleague was talking of the next 'in' thing - weather derivatives. I get fascinated what men can do to make money!