2 Explain the statement made by the Chairman of the Chicago Board of Trade (CBoT) in the following extract:

The Chicago Board of Trade will launch an oats futures options contract on May 1. Options on oats will provide a variety of hedging possibilities.

The American Oats Association in Minneapolis said that producers were more likely to use options than futures. According to the CBoT chairman, by purchasing options a hedger can establish price ceilings and floors, and still benefit if cash prices change in his favor.