Regarding the pricing problem of temperature option in everyday weather risks management,the Cao-Wei model is insufficient to reflect the global warming trend and correlation among geographical regions.In order to resolve this problem,a new multivariate temperature model was proposed.Based on the model,the cooling design day/heating design day (CDD/HDD) index options were priced accurately by using the burn-analysis method and Monte-Carlo simulations.The simulation results indicate that using Monte-Carlo simulations to price CDD/HDD index options is not only effective but also reasonable.In addition,the result provides for the weather derivatives market an effective theoretical evidence and also has practical value for option pricing.The necessary theoretical basis for the future development of domestic insurance and weather derivatives was supplied,and the future use of the CDD index option can be more reasonable to hedge weather insurance and will play an effective role in risk management.