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Originally published in: 2016
Length: 6 pages
Data source: Field research

Abstract

This case study is an introduction to forward / futures contracts and options and their use in terms of hedging and / or speculation. It starts by giving the motivation for derivatives markets, that is providing hedging tools. It then defines precisely two particular types of derivatives contracts: forward or futures and options. Finally, the case ends with the study of the different possibilities faced by a farmer that wants to diminish his risks.

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Abstract

This case study is an introduction to forward / futures contracts and options and their use in terms of hedging and / or speculation. It starts by giving the motivation for derivatives markets, that is providing hedging tools. It then defines precisely two particular types of derivatives contracts: forward or futures and options. Finally, the case ends with the study of the different possibilities faced by a farmer that wants to diminish his risks.

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