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The inaccuracy of the Black-Scholes formula arises from two aspects: the formula is for European options while most real option contracts are American; the formula is based on the assumption that underlying asset prices follow a lognormal distribution while in the real world asset prices cannot...
Persistent link: https://www.econbiz.de/10005807877
Behavioral finance is a relatively new field of inquiry that may help better understand farmer marketing. The theory … theory can help explain why producers would pay a marketing consultant even when markets are efficient. Extension programs … need to consider the psychology of marketing. The theory suggests that decisions need to be framed in terms of their effect …
Persistent link: https://www.econbiz.de/10005493488
paper first measures the extent to which producers display an active or mechanical marketing style using individual farmer … sales. Next, tests of performance persistence are conducted to determine if there is any advantage to an active marketing … style. The results show that southern Oklahoma wheat producers tend to have a mechanical marketing style, while at other …
Persistent link: https://www.econbiz.de/10005513493
As opposed to a normal market, an inverted market has a negative price of storage or spread. Market inversions in nearby spreads rarely occur during early months of the crop year since stocks are usually abundant after harvest. However, market inversions frequently occur when the spreads are...
Persistent link: https://www.econbiz.de/10005805812
the market. Thus, there does not seem to be a great need for producers to hire a market advisor to do their marketing for …
Persistent link: https://www.econbiz.de/10005807438
Returns to managed futures funds and Commodity Trading Advisors (CTAs) have decreased dramatically during the last several years. Since these funds overwhelmingly use technical analysis, this research examines futures prices to determine if there is evidence of a structural change in futures...
Persistent link: https://www.econbiz.de/10005807441
There is no shortage of studies regarding price forecasting and marketing strategies of producers. However, the … marketing information that they say they do. This study uses actual producer transaction data to determine how producers … marketing decisions correspond with those recommended by market advisory services and with those that use futures spreads to …
Persistent link: https://www.econbiz.de/10005798626
forecasts of fed-cattle quality grades, the forecast evaluation methods are shown to increase cattle marketing revenues by $2 …
Persistent link: https://www.econbiz.de/10005801178
Practioners Abstract: Returns to managed futures funds and Commodity Trading Advisors (CTAs) have decreased dramatically during the last several years. Since these funds overwhelmingly use technical analysis, this research examines futures prices to determine if there is evidence of a structural...
Persistent link: https://www.econbiz.de/10005338852
imply that rollover hedging should not be seriously considered as a marketing alternative. As long as the commodity markets …
Persistent link: https://www.econbiz.de/10005344115