Can Options Be Used as a Hedging Instrument?
We develop a portfolio choice model for farmers faced with both price and production uncertainty who can hedge this uncertainty using both options and futures contracts. We then simulate the decision process of a typical Iowa farmer and derive his or her optimal options and futures position.
Year of publication: |
1992-01
|
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Authors: | Hayes, Dermot ; Sakong, Yong ; Hallam, Arne |
Institutions: | Center for Agricultural and Rural Development (CARD), Iowa State University |
Saved in:
freely available
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