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G85-769 Options Contract Specifications On Grain Futures Contracts, Lynn H. Lutgen, Lynne A. Todd

University of Nebraska-Lincoln Extension: Historical Materials

This publication, the second of six NebGuides on agricultural grain options, explains specifications and uses of futures contracts for corn and soybean trading.

Before using options on agricultural futures contracts, it is essential to understand what constitutes an options contract.

This publication outlines contract specifications of corn and soybean options on corresponding futures contracts presently traded at the Chicago Board of Trade (CBT).

All contract specifications are discussed including: price quotations, maximum and minimum price fluctuation figures, and last trading day for an option. How strike prices and premium values are determined in relation to futures contract prices also will …

G85-770 An Introduction To Grain Options On Futures Contracts, Lynn H. Lutgen, Lynne A. Todd

University of Nebraska-Lincoln Extension: Historical Materials

This publication, the third of six NebGuides on agricultural grain options, explains how to use futures options as a marketing tool.

A new agricultural marketing tool is available to farmers. A futures agricultural option is much like an insurance policy. It is a marketing alternative that gives farmers insurance against unfavorable price moves, but allows producers to take advantage of favorable price moves. To better understand terms used in this paper, please see NebGuide G85-768, Basic Terminology For Understanding Grain Options.

G85-768 Basic Terminology For Understanding Grain Options, Lynn H. Lutgen

University of Nebraska-Lincoln Extension: Historical Materials

This publication, the first of six NebGuides on agricultural grain options, defines many of the terms commonly used in futures trading.

In order to properly understand examples and literature on options trading, it is imperative the reader understand the terminology used in trading grain options. The following list also includes terms commonly used in futures trading. These terms are included because the option is traded on an underlying futures contract position. It is an option on the futures market, not on the physical commodity itself. Therefore, a producer also needs a basic understanding of the futures market.