USING A COTTON FUTURES OPTIONS CONTRACT STRATEGY TO ENHANCE PRICE AND REVENUES

Herndon, Cary W.,, O.A. Cleveland and Olga Isengildina

No 21491, 1999 Annual meeting, August 8-11, Nashville, TN from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Government program changes and increased price volatility are causing cotton farmers to manage more price risks. A "harvest strategy" which sells cotton at harvest, purchases an at-the-money July call options and exercises this contract eight months later is a strategy which takes advantage of potential future price increases.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 10
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea99:21491

DOI: 10.22004/ag.econ.21491

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