IMPORTANCE OF COMMODITY FUTURES AND OPTIONS FOR HEDGING STRATEGIES IN AGRICULTURAL SECTOR
Keywords:
Commodity Exchange, Futures, Options, Commodity DerivativesAbstract
In this paper is analyzed importance of futures and options contracts on management of price risk in agricultural sector. The agricultural products/inputs price volatility worldwide reinforces the need for the development of market mechanisms that would allow agricultural producers production planning, marketing, and hedging. The object of this paper is to study and analyze the relevance of commodity derivates for the hedging strategies in agricultural sector.
Study shows that developed futures and options commodity exchanges could be of significant importance for agricultural sector by using futures and options contracts for managing the risk that the price of agricultural products/inputs will change in unfavorable direction.
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Copyright (c) 2015 Vlado Kovacevic, Vladimir Zakic, Snjezana Djurdjevic (Author)
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