Persistent Link:
http://hdl.handle.net/10150/219723
Title:
A Comparison of Selected Cotton Hedges for Arizona Cotton Producers
Author:
Torok, S. J.; Beach, W. E.
Affiliation:
Department of Agricultural Economics, The University of Wyoming; Arizona State University
Issue Date:
Mar-1986
Publisher:
College of Agriculture, University of Arizona (Tucson, AZ)
Journal:
Cotton: A College of Agriculture Report
Abstract:
Cotton options on futures began trading in the fall of 1984 offering Arizona cotton producers an alternative risk management tool. Advantages of hedging with cotton options include: limiting risk, preserving unlimited profit potential, providing increased marketing flexibility and greater liquidity. This study compared selected cotton option hedges utilizing mean net revenues and standard deviations. Also, computed premiums were calculated with a modified Black-Scholes option pricing model to identify a historical price volatility that consistently signaled favorable cotton option trades.
Keywords:
Agriculture -- Arizona; Cotton -- Arizona; Cotton -- Economics
Series/Report no.:
370063; Series P-63
Description:
The 1985 and 1986 Cotton Reports have the same publication and P-Series numbers.

Full metadata record

DC FieldValue Language
dc.titleA Comparison of Selected Cotton Hedges for Arizona Cotton Producersen_US
dc.contributor.authorTorok, S. J.en_US
dc.contributor.authorBeach, W. E.en_US
dc.contributor.departmentDepartment of Agricultural Economics, The University of Wyomingen_US
dc.contributor.departmentArizona State Universityen_US
dc.date.issued1986-03-
dc.publisherCollege of Agriculture, University of Arizona (Tucson, AZ)en_US
dc.identifier.journalCotton: A College of Agriculture Reporten_US
dc.description.abstractCotton options on futures began trading in the fall of 1984 offering Arizona cotton producers an alternative risk management tool. Advantages of hedging with cotton options include: limiting risk, preserving unlimited profit potential, providing increased marketing flexibility and greater liquidity. This study compared selected cotton option hedges utilizing mean net revenues and standard deviations. Also, computed premiums were calculated with a modified Black-Scholes option pricing model to identify a historical price volatility that consistently signaled favorable cotton option trades.en_US
dc.subjectAgriculture -- Arizonaen_US
dc.subjectCotton -- Arizonaen_US
dc.subjectCotton -- Economicsen_US
dc.identifier.urihttp://hdl.handle.net/10150/219723-
dc.relation.ispartofseries370063en_US
dc.relation.ispartofseriesSeries P-63en_US
dc.descriptionThe 1985 and 1986 Cotton Reports have the same publication and P-Series numbers.en_US
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