Agricultural options and price supports: competitive or compatible?
1985
Schertz, L.P.
Extract: The initiation of option trading raises important questions about the potential relationships between options for domestic agricultural commodities and Government price supports. These considerations logically fall into three categories: (1) contrasts and similarities between options and price supports, (2) conditions in which options and price supports could be competitive with each other, and (3) ways in which options might be used to transfer price risks from producers to the public.
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