Decision analysis models of futures options purchase decisions

D Samson and A Wirth

Omega, 1990, vol. 18, issue 3, 259-267

Abstract: Decision analysis models can provide powerful insights about the relationships between variables in the futures/options purchase decision. These variables include the decision-maker's risk attitude, assessed price distribution, options conditions and price. This paper structures the 'put' option purchase decision faced by decision-makers (as price takers) who consider using the options market to modify their risk profile. Such models can be used to evaluate options as a form of commodity price insurance.

Keywords: options; decision; analysis; risk; utility (search for similar items in EconPapers)
Date: 1990
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Citations: View citations in EconPapers (2)

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