Grain Market Futures Options Cash Calculator
Download the spreadsheet to see what the market is offering in terms of cash price for differnet option strategies in grain marketing.
Options can be a very useful way to obtain a minimum price for your crops while still being exposed to a bull market. Selling futures, forward contracting, and hedge to arrive contracts are way to obtain a minimum price for your crops, however they deny access to rising prices if the market rises after the contracts have been put in place.
Futures options can be combined with forward or futures contracts to provide access to a rising market. There are the costs of the option called a premium that are purchased when buying or selling any option.
About the calculator:
- Ther are two parts to this calculator:
- Pricing the purchase of put options
- Pricing the purchase of call options after initiating a forward cash contract
- See the direction and hints boxes on the right side of the calculator to correctly input the information
- The password to edit the spreadsheet will be emailed to you.
Check out some other useful links:
- Marketing specialist at the University of Minnesota Ed Usset's Blog
- Practice your grain trading with the Commodity Challenge
- Read our Daily Market Chatter Blog and get incite from the worlds best futures traders
- Learn some more marketing tips and tricks with our Achieving Success in Marketing Blog
Don't forget to check out Cash Cow Farmer and see how our tools can help improve your graim marketing and farm management.