Article
Can Options Be Used as a Hedging Instrument?
CARD Working Papers
Publication Date
1-1-1992
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.
Disciplines
Citation Information
Yong Sakong, Dermot J. Hayes and Arne Hallam. "Can Options Be Used as a Hedging Instrument?" (1992) Available at: http://works.bepress.com/arne-hallam/2/