Publication Date
1-1992
Series Number
92-WP 85
Abstract
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.
Recommended Citation
Sakong, Yong; Hayes, Dermot J.; and Hallam, Arne, "Can Options Be Used as a Hedging Instrument?" (1992). CARD Working Papers. 113.
https://lib.dr.iastate.edu/card_workingpapers/113
Included in
Agricultural and Resource Economics Commons, Agricultural Economics Commons, Finance Commons
