Livestock Options Market

Lee Schulz and John Lawrence ( May, 2022 )

Summary

With an option, a floor or ceiling price can be established without locking in a price. The option holder can still benefit from favorable price changes in the market. Like insurance, you are protected from an unfavorable event if it occurs. The discussion below focuses on lean hog options, but the concepts apply to other livestock.

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Organization

Iowa State University Extension

Publisher

Iowa State University

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1021

Material Type

Written Material