Tutorvo

Hedging a Producer: Hedge Ratio, Hedged vs. Unhedged Revenue

Lesson 7 of 816 minLab

This lesson is part of the course

In this lesson

You hedge 75% of a farm's corn harvest with short futures and compare hedged and unhedged revenue and price per bushel across six harvest prices.

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Lessons in this course

  1. Contract Specs: Contract Value, Tick Size & Tick ValueLab13 min Locked
  2. Futures P&L: Long, Short, per Contract and per PositionLab13 min Locked
  3. Initial & Maintenance Margin, Mark-to-Market and Margin CallsLab16 min Locked
  4. Leverage and Position Sizing from Risk per TradeLab15 min Locked
  5. Basis and Convergence: Cash vs. FuturesLab14 min Locked
  6. Contango, Backwardation and Roll YieldLab15 min Locked
  7. Hedging a Producer: Hedge Ratio, Hedged vs. Unhedged RevenueLab16 min Locked
  8. Calendar Spreads: Entry, Exit and P&LLab15 min Locked