G85-770 An Introduction to Grain Options On Futures Contracts

Authors

Lynn H. Lutgen, University of Nebraska - Lincoln
Lynne A. Todd, University of Nebraska - Lincoln

Date of this Version

1985

Document Type

Article

Comments

© 1985, The Board of Regents of the University of Nebraska on behalf of the University of Nebraska–Lincoln Extension. All rights reserved.

Abstract

This publication, the third of six NebGuides on agricultural grain options, explains how to use futures options as a marketing tool.

A new agricultural marketing tool is available to farmers. A futures agricultural option is much like an insurance policy. It is a marketing alternative that gives farmers insurance against unfavorable price moves, but allows producers to take advantage of favorable price moves. To better understand terms used in this paper, please see NebGuide G85-768, Basic Terminology For Understanding Grain Options.