Welcome to the CIH Corn Producer Simulation
Please take a moment to review the objective of this simulation, consult the instructions, and note the simulation rules. During the simulation, you’ll be able to access this information again.
Your Objective
You’re a crop producer with 1,000,000 bushels of corn to market in the 4th quarter. In keeping with your policy of carefully protecting against falling Corn prices, you want to begin hedging the December Corn contract in the first quarter this year.
Corn Volume Requirement:
Selling 1,000,000 Bushels (200 contracts)
Contract Coverage Rules
Each of the following strategies equals
5000 Bushels (1 contract) of coverage:
- 1 Short Futures
- 1 Long Put Option
- 1 Long Put Option Spread
- 1 Short Call Option
- 1 Long Put Option + 1 Short Call Option
- 1 Long Put Option Spread + 1 Short Call Option