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Analysis Of Soybean Options Harimting Strategies

Author

Listed:
  • Frank, Stuart D.
  • Pfeiffer, George H.
  • Curtis, Charles E.
  • Irwin, Scott H.

Abstract

This paper examines the returns and risk of soybean marketing strategies using futures and options. Two conclusions were suggested by the results. First, adding options strategies to traditional cash sales, static futures hedging, and storage hedging activities substantially improves risk-return tradeoffs. Second, adding technical futures hedging strategies to options hedging strategies further improves risk-return tradeoffs.

Suggested Citation

  • Frank, Stuart D. & Pfeiffer, George H. & Curtis, Charles E. & Irwin, Scott H., 1986. "Analysis Of Soybean Options Harimting Strategies," 1986 Annual Meeting, July 27-30, Reno, Nevada 278501, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea86:278501
    DOI: 10.22004/ag.econ.278501
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    References listed on IDEAS

    as
    1. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 53-62.
    2. Purcell, Wayne D. & Riffe, Don A., 1980. "The Impact Of Selected Hedging Strategies On The Cash Flow Position Of Cattle Feeders," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(1), pages 1-9, July.
    3. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(4), pages 664-665.
    4. DeeVon Bailey & James W. Richardson, 1985. "Analysis of Selected Marketing Strategies: A Whole-Farm Simulation Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 813-820.
    5. Purcell, Wayne D. & Riffe, Don A., 1980. "The Impact of Selected Hedging Strategies on the Cash Flow Position of Cattle Feeders," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 12(1), pages 85-93, July.
    6. Gorman, William D. & Schuneman, Thomas R. & Catlett, Lowell B. & Urquhart, N. Scott & Southward, G. Morris, 1982. "Empirical Evaluation Of Selected Hedging Strategies For Cattle Feeders," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(2), pages 1-12, December.
    7. Myles J. Watts & Larry J. Held & Glenn A. Helmers, 1984. "A Comparison of Target MOTAD to MOTAD," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 32(1), pages 175-186, March.
    8. Black, Fischer, 1976. "The pricing of commodity contracts," Journal of Financial Economics, Elsevier, vol. 3(1-2), pages 167-179.
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