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  • Commodity Options as Price Insurance for Cattlemen
    John C. McKissick, University of Georgia, 1996

    Because of these risks, producers might want to insure feeder cattle, fed cattle or feed against unfavorable price movements, while still being able to take advantage of favorable prices. Cattlemen have this opportunity by using the commodity options market.
  • Factors Affecting Option Premium Values
    Jason Johnson, Jackie Smith, Kevin Dhuyvetter and Mark Waller, Texas Agricultural Extension Service, September 1998

    Option buyers pay option sellers a premium for the rights conveyed by the option contract. The option gives the buyer the right, but not the obligation, to take the underlying futures position, so the premium is his maximum financial liability.
  • Factors Affecting Option Premium Values (Curriculum Guide)
    Texas Agricultural Extension Service, November 1998

    Goals and objectives: (1) to understand the components of option premiums, to learn how to compute the intrinsic value and time value of option premiums, and (3) to be able to evaluate option premiums currently available for alternative commodities.
  • Hedging with a Put Option
    C. Anderson, J. Smith, D. McCorkle and D. O’Brien, Texas Agricultural Extension Service, June 1998

    The main advantages of a put option are protection against lower prices, limited liability with no margin deposits, and the potential to benefit from higher prices. Futures contracts alone cannot provide this combination of downside price insurance and upside potential.
  • Hedging with a Put Option (Curriculum Guide)
    Texas Agricultural Extension Service, June 1998

    Goals and Objectives: (1) understand the application and use of put options in price risk management, (2) discuss the basic fundamentals of hedging future prices with put options, (3) review the advantages and disadvantages of put options.
  • Hedging with Wheat Options
    Minneapolis Grain Exchange, October 1998

    This presentation describes basic concepts in hedging with wheat options.
  • Introduction to Agricultural Options
    Thomas Worley, Department of Agricultural Economics, Washington State University, January 1999

    Provides an overview of the usage of options in grain markets.
  • Introduction to Options
    Craig Fincham, James Mintert, Mark Waller and William Tierney, Texas Agricultural Extension Service, September 1998

    Options give the agricultural industry a flexible pricing tool to assist in price risk management. They offer a type of insurance against adverse price moves, require no margin deposits for buyers, and allow buyers to participate in favor-able price moves.
  • Options on Future Contracts
    USDA, Risk Management Agency, September 1997

    There are two basic types of options on futures contracts: "calls" and "puts." A call option on futures contracts conveys the right to the buyer to purchase a specific futures contract at a particular price during a specified period of time.
  • Options Trading in Agricultural Commodities
    Steven .P Erickson and Christopher A. Hurt, Cooperative Extension Service Purdue University, January 1985

    This article is an elementary guide to the terms used in trading options. It should serve as an introduction to allow producers, lenders, agribusinesses, and others to assess the usefulness of options in their particular business.
  • Producer Marketing Management: Primer on Agricultural Options
    Duane Griffith, Montana State University Cooperative Extension Service and Stephen Koontz Cooperative Extension Service Colorado State University, December 1999
    This article is intended to introduce newcomers to agricultural options trading. It defines some options terms, outlines differences between options and futures contracts and explores applications of options for agricultural producers.
  • Selecting and Using Agricultural Options
    Carl German, Delaware Cooperative Extension, 1997

    This fact sheet gives a brief overview of what is involved in establishing sales prices for commodities using agricultural commodity options.
  • The Window Strategy with Options
    Dean McCorkle, Steve Amosson and Marvin Fausett, Texas Agricultural Extension Service, June 1998

    The window strategy involves simultaneously buying a put option and selling a call option. Because you can choose whichever strike prices you desire (from among the strikes offered), the window strategy can be customized to best fit your situation.
  • The Window Strategy with Options (Curriculum Guide)
    Texas Agricultural Extension Service, June 1998

    Goals and Objectives: (1) learn what a window is and how one is constructed, (2) learn how to derive the floor price and price ceiling and (3) learn how selecting different strike prices effects the floor price and price ceiling.
  • Using Options to Follow a Rising Market
    Lynn H. Lutgen, University of Nebraska Cooperative Extension, 1986

    Discusses how to use the options market effectively to protect us from our own emotions.
  • Using Options to Hedge Farm and Ranch Inputs
    David Anderson, Dean McCorkle, Bud Schwart and Dan O’Brien, Texas Agricultural Extension Service, February 1999

    Call options are a pricing tool that gives producers considerable flexibility in managing the price risks associated with farm and ranch inputs.


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