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Selected Works of Dermot J. Hayes
Unpublished Paper
Can Options Be Used as a Hedging Instrument?
CARD Working Papers
  • Yong Sakong, Iowa State University
  • Dermot J. Hayes, Iowa State University
  • Arne Hallam, Iowa State University
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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/dermot_hayes/27/