Options trading in agricultural futures markets: A reasonable instrument of risk hedging, or a driver of agricultural price volatility?

Options trading is increasingly important in more volatile agricultural markets. Options allow for unilateral hedging of price risks, e. g. against falling prices only, and are an indispensable risk management instrument for farmers and grain dealers. Concerns that soaring options trading could spark incremental volatility of international agricultural commodity prices have not been empirically verified to date. Econometric assessments for the MATIF grain maize market suggest that option trading does not have a volatility increasing effect.


Other Titles:
Optionshandel auf landwirtschaftlichen Terminmärkten: Sinnvolles Instrument der Risikoabsicherung oder Treiber von Agrarpreisvolatilität
Issue Date:
2014
Publication Type:
Report
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/200131
PURL Identifier:
http://purl.umn.edu/200131
Total Pages:
4
Series Statement:
IAMO Policy Brief
20




 Record created 2017-04-01, last modified 2019-10-11

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)