Cotton Short Hedge Evaluator: A Microcomputer Program

Thomas L. Sporleder and Carl G. Anderson


 
ABSTRACT

Options offer a new strategy for short hedging cotton. The analysis of options in terms of which strike price to choose and how many puts to buy is complex. A microcomputer program is available to assist in the evaluation of the expected performance of put options compared to short futures and no hedge strategies.



Reprinted from 1987 Proceedings: Beltwide Cotton Production Research Conferences pp. 438 - 441
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998