The main objective of this study was to evaluate alternative marketing strategies involving options on live cattle futures contracts during the period of 1966-85. To predict the option premiums that would have occurred at various points in this period of time, the study did research on market premiums of options on live cattle futures contracts from October 30, 1984, to November 22, 1985. The research showed that actual premiums conform closely to the premiums estimated by the Black model of option pricing. The generalized stochastic dominance with absolute risk aversion function intervals is demonstrated in the study in order to make the evaluation. The results showed that under different risk preferences, the commodity options provide the dominant alternative for cattle producers. Options provided protection from losses resulting from falling cash price and in some cases raised average income of hedgers.
| Identifer | oai:union.ndltd.org:arizona.edu/oai:arizona.openrepository.com:10150/276487 |
| Date | January 1987 |
| Creators | Shuaibi, Abdulaziz Mohamed, 1960- |
| Publisher | The University of Arizona. |
| Source Sets | University of Arizona |
| Language | en_US |
| Detected Language | English |
| Type | text, Thesis-Reproduction (electronic) |
| Rights | Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author. |
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