Short Hedge Example With Options

Marty Foreman, Joe Parcell, and Vern Pierce ( July, 2020 )

Summary

This guide describes how to place an output (short) hedge in the options market to reduce the price risk associated with selling an output produced in your business. A short hedge in the options market is referred to as the purchasing of a put option.

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Details

Organization

University of Missouri Extension

Publisher

University of Missouri

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367

Material Type

Written Material