Back to School With Marketing Guru Ed Usset #31: Buying Puts


Buying put options (the right to sell futures) is one way to establish a minimum price. Let’s assume that Nov’10 soybean futures are trading at $9.30, and you decide to pay 52 cents per bushel for a 920 put. You expect a harvest soybean basis of 60 cents under the November contract. What is your minimum expected price for soybeans at harvest?

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.