Option a futures put a selling contract wheat on


The Global Industry Benchmark for More Than 135 Futufes Soft Red Winter (SRW) and KC Hard Red Winter (HRW) are the global industry standards for wheat. Definition:A put option is a derivative of a futures contract. The purchase of a put option gives the buyer the right, but not the obligation, to sell a futures contract at a designated strike price before the contract expires.In comHedging with grain futuresBy using grain futures contracts, you establish a forward price for your crop.

This maycan be done anytime prior to when you expect to sell grain in your local cash market. Forexample, at planting time for wheat, you may decide pit use futures to establish a forwardprice for the wheat you will sell at harvest. You have decided to forwardprice some of fall production. Example: Long Wheat Put OptionYou observed that the near-month Euronext Milling Wheat futures contract is trading at the price of EUR 14.50 per tonne. At this price, your put option is now in the money.

Gain from Put Option ExerciseBy exercising your put option now, you get to assume a short position in the underlying wheat futures at the strike priUnanswered Posts My PostsReturn to HomepageChatboxForumsTraders HideoutPlatforms and IndicatorsTrading JournalsElite Trading JournalsPsychology and Money ManagementHire a Consultant or ProgrammerOff-TopicThe Elite Circle. Wheat Futures Selling a put option on a futures contract wheat can trade Wheat futures at Chicago Board of Trade (CBOT) and NYSE Euronext (Euronext).CBOT Wheat futures prices are quoted in dollars and cents per bushel and are traded in lot sizes of 5000 bushels (13 metric tons).Euronext Milling Wheat futures are traded in units of 50 tonnes and contract prices tutures quoted in dollars and cents per bushel.Euronext Wheat (No.

405) futures prices are quoted in pounds and pence per metric ton and are traded in lot sizes of 100 tonnes.




Option a futures put a selling contract wheat on

Selling a put option on a futures contract wheat