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Options markets are a new tool that agricultural producers may use to manage risk for profits. Producers must take risks in order to have any possibility of profits. But, they have choices concerning how much and what kinds of risks they take. Options have unique risk characteristics which make them a potentially valuable addition to market outlook information, futures markets and cash contracts in the producer's set of market risk management tools. |
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©National Cotton Council, Memphis TN |
Document last modified Sunday, Dec 6 1998
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