International Journal of Global Operations Research
Vol. 5 No. 2 (2024): International Journal of Global Operations Research (IJGOR)m May 2024

CALCULATION OF RICE COMMODITY AGRICULTURAL INSURANCE PREMIUM PRICES BASED ON RAINFALL INDEX USING THE BLACK-SCHOLES METHOD

Setyapamungkas, Febriaputra (Unknown)
Gymnastiar, Muhammad (Unknown)

Article Info

Publish Date
27 May 2024

Abstract

This study applies the Black-Scholes method to calculate rice commodity insurance premiums based on rainfall indexes. By considering rainfall fluctuations as the primary risk in rice production, the Black-Scholes method provides a more accurate and efficient estimation of insurance premiums. The research involves historical rainfall data collection and statistical analysis, resulting in realistic premium pricing. This innovative approach enhances risk management and sustainability in the rice commodity sector, benefiting stakeholders such as insurance companies and farmers. Future research should explore additional factors, including agricultural technology and government policies, for further refinement of premium calculation models.

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Journal Info
International Journal of Global Operations Research
Website

Abbrev

ijgor

Publisher

Indonesian Operations Research Association

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Engineering Mathematics

Description

International Journal of Global Operations Research (IJGOR) is published 4 times a year and is the flagship journal of the Indonesian Operational Research Association (IORA). It is the aim of IJGOR to present papers which cover the theory, practice, history or methodology of OR. However, since OR is ...