|
|
|
|
|
|
|
|
|
|
- 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.
|
