ALTERNATIVE PRICING STRATEGIES FOR FEED GRAINS IN ARIZONA USING FUTURES AND OPTIONS CONTRACTS ON CORN

Persistent Link:
http://hdl.handle.net/10150/276524
Title:
ALTERNATIVE PRICING STRATEGIES FOR FEED GRAINS IN ARIZONA USING FUTURES AND OPTIONS CONTRACTS ON CORN
Author:
Al-Butaih, Khalid Mohammad, 1958-
Issue Date:
1987
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
This study concerns the evaluation of alternative pricing strategies involving options on feed grains futures contracts during the period of 1973-1986. To predict the option premiums that would have occurred at various points in this time period, the study did research on market premiums of options on corn futures contracts from March 1, 1985 until December 31, 1985. The research showed that market premiums conformed closely to the premiums estimated by Black model of options pricing. The generalized stochastic dominance with absolute risk aversion function intervals is applied in the study in order to evaluate the strategies. The results showed that under different risk preferences, (DARA and CARA), the commodity options strategies dominate the cash sale strategy, but do not dominate the hedging by selling futures contract strategy. Options may provide alternatives for feed grains producers and traders. Put (call) options provided protection from losses resulting from falling (raising) cash price and may somtimes raise average income/margin of feed grain producers and traders.
Type:
text; Thesis-Reproduction (electronic)
Keywords:
Corn -- Economic aspects.; Grain -- Economic aspects -- Arizona.; Commodity futures -- Arizona.
Degree Name:
M.S.
Degree Level:
masters
Degree Program:
Graduate College; Agricultural Economics
Degree Grantor:
University of Arizona

Full metadata record

DC FieldValue Language
dc.language.isoen_USen_US
dc.titleALTERNATIVE PRICING STRATEGIES FOR FEED GRAINS IN ARIZONA USING FUTURES AND OPTIONS CONTRACTS ON CORNen_US
dc.creatorAl-Butaih, Khalid Mohammad, 1958-en_US
dc.contributor.authorAl-Butaih, Khalid Mohammad, 1958-en_US
dc.date.issued1987en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractThis study concerns the evaluation of alternative pricing strategies involving options on feed grains futures contracts during the period of 1973-1986. To predict the option premiums that would have occurred at various points in this time period, the study did research on market premiums of options on corn futures contracts from March 1, 1985 until December 31, 1985. The research showed that market premiums conformed closely to the premiums estimated by Black model of options pricing. The generalized stochastic dominance with absolute risk aversion function intervals is applied in the study in order to evaluate the strategies. The results showed that under different risk preferences, (DARA and CARA), the commodity options strategies dominate the cash sale strategy, but do not dominate the hedging by selling futures contract strategy. Options may provide alternatives for feed grains producers and traders. Put (call) options provided protection from losses resulting from falling (raising) cash price and may somtimes raise average income/margin of feed grain producers and traders.en_US
dc.typetexten_US
dc.typeThesis-Reproduction (electronic)en_US
dc.subjectCorn -- Economic aspects.en_US
dc.subjectGrain -- Economic aspects -- Arizona.en_US
dc.subjectCommodity futures -- Arizona.en_US
thesis.degree.nameM.S.en_US
thesis.degree.levelmastersen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.disciplineAgricultural Economicsen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.identifier.proquest1332148en_US
dc.identifier.oclc19061540en_US
dc.identifier.bibrecord.b16701835en_US
dc.identifier.bibrecord.b18395351en_US
All Items in UA Campus Repository are protected by copyright, with all rights reserved, unless otherwise indicated.