58: Commodity Options Fundamentals


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Jan 31 2017 16 mins   4

Commodity options are some of the most important tools in hedging, especially once you get to grain above and beyond your insurance guarantee.

Most farmers understand what that means: you’re insured for a certain percentage of your crop that you’ve proven over the past 10 years for each commodity you farm. What you can’t insure, you’ll want to use options on, or something similar.

Today, we’re going to march through some of the most important, fundamental concepts related to options.