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Excerpt from the report Preface: Trading in agricultural commodity options is expected to resume in 1984 after a nearly 50-year suspension. Options, like futures, can be used by farmers to manage their risks to make them less vulnerable to unexpected price shifts. This manual explains the concept of options, the terminology of option contracts, and the factors influencing option prices. It includes examples to show the comparative advantages, disadvantages, and profitability of options versus futures and how farmers' expectations of crop yields will affect their hedging strategies


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