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The recent and rapidly growing interest in biofuel as a green energy source has raised concerns about its impact on the prices, returns and volatility of related agricultural commodities. Analyzing the spillover effects on agricultural commodities and biofuel helps commodity suppliers hedge...
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the use of these markets. This study determines the relative costs of hedging with futures and options and compares these … with the costs of other variable inputs. We find that with the exception of hedging corn with both tools and soybeans with … options the costs of hedging has only increased at roughly the same rate as all other inputs. …
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