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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.
Organization | Iowa State University Extension |
Publisher | Iowa State University |
Publication Date | May, 2022 |
Publication Views | 1116 |
Material Type | Written Material |