|
SEON | Lets say I enter into a contract with my local elevator to deliver him 5000 bushels of hard red wheat at the 2011 harvest at a price of $6 per bu. I plant my crop this fall and things look good but in the meantime, the price of July 2011 wheat jumps to $8 per bu and I wish I could get out of my contract.
Can I buy a Jul 2011 call option to sell wheat that will effectively "get me out" of my contract with the elevator? | |
|
buying calls as insurance
