TeachMeFinance.com - explain Options contracts, futures
Options contracts, futures The term 'Options contracts, futures ' as it applies to the area of agriculture can be defined as ' A contract traded on a commodity futures exchange that gives the buyer the right without obligation to buy or sell a futures contract over a specified time period. The FAIR Act of 1996 requires USDA to conduct research through pilot programs to determine if futures and options contracts can provide producers with reasonable protection from the financial risks of fluctuations in price, yield, and income inherent in the production and marketing of agricultural commodities'.
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