The purpose of this paper is to model and to value a temperature derivative to hedge late frost risk in grape cultivation. Starting from historical data, we propose a continuous stochastic model to describe the minimum temperature behavior. We define an American binary option to hedge late frost risk, and present a numerical application to grape cultivation.Fil: Cortina, Elsa Aurora. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Saavedra 15. Instituto Argentino de Matemática Alberto Calderon; ArgentinaFil: Sánchez, Ignacio. Universidad de San Andres; Argentin
