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Harvest Cereals imports wheat as an ingredient for its product line. The current price of wheat per bushel will allow for a reasonable profit margin.
Harvest Cereals imports wheat as an ingredient for its product line. The current price of wheat per bushel will allow for a reasonable profit margin. But, Harvest understands that the global price of wheat changes, sometimes quite often, and is worried that the price of the next shipment due in the near future will change from its current level. Given this scenario, what option position will provide the best wheat hedge?
Write straddles on wheat | ||
Write call options on wheat | ||
Buy call options on wheat | ||
Buy put options on wheat | ||
Write put options on wheat |
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