Risk Management in Action

169

Options Real Time

This graph shows the performance of a call option, based on current market values.  This shows how a call option can be used to protect a maximum price, but also how the farmer can benefit if the market falls.

Performance of £160/t strike Call Option for Nov-11, purchased on 22-Feb-2011 @£18/t

Date Nov-11′ futures Call option strike price Call option premium Maximum wheat price using option (£/t) Current wheat price using option (£/t) Wheat price if the market falls to £120/t (£/t)
8 Sep 2011 169.00 160.00 18.00 178.00 178.00 138.00
7 Sep 2011 170.50 160.00 18.00 178.00 178.00 138.00
6 Sep 2011 169.00 160.00 18.00 178.00 178.00 138.00
5 Sep 2011 170.20 160.00 18.00 178.00 178.00 138.00
2 Sep 2011 173.05 160.00 18.00 178.00 178.00 138.00
1 Sep 2011 172.75 160.00 18.00 178.00 178.00 138.00
31 Aug 2011 174.75 160.00 18.00 178.00 178.00 138.00
30 Aug 2011 174.00 160.00 18.00 178.00 178.00 138.00
26 Aug 2011 171.75 160.00 18.00 178.00 178.00 138.00
25 Aug 2011 169.95 160.00 18.00 178.00 178.00 138.00
24 Aug 2011 169.00 160.00 18.00 178.00 178.00 138.00
23 Aug 2011 169.00 160.00 18.00 178.00 178.00 138.00
22 Aug 2011 166.00 160.00 18.00 178.00 178.00 138.00
19 Aug 2011 163.55 160.00 18.00 178.00 178.00 138.00
18 Aug 2011 162.50 160.00 18.00 178.00 178.00 138.00
17 Aug 2011 164.00 160.00 18.00 178.00 178.00 138.00
16 Aug 2011 164.50 160.00 18.00 178.00 178.00 138.00
15 Aug 2011 164.85 160.00 18.00 178.00 178.00 138.00
12 Aug 2011 163.25 160.00 18.00 178.00 178.00 138.00
11 Aug 2011 163.25 160.00 18.00 178.00 178.00 138.00
10 Aug 2011 162.00 160.00 18.00 178.00 178.00 138.00
9 Aug 2011 160.70 160.00 18.00 178.00 178.00 138.00
8 Aug 2011 157.25 160.00 18.00 178.00 175.25 138.00
5 Aug 2011 159.65 160.00 18.00 178.00 177.65 138.00
4 Aug 2011 161.25 160.00 18.00 178.00 178.00 138.00
3 Aug 2011 164.00 160.00 18.00 178.00 178.00 138.00
2 Aug 2011 161.00 160.00 18.00 178.00 178.00 138.00
1 Aug 2011 163.50 160.00 18.00 178.00 178.00 138.00
29 Jul 2011 163.65 160.00 18.00 178.00 178.00 138.00
28 Jul 2011 165.00 160.00 18.00 178.00 178.00 138.00
27 Jul 2011 163.50 160.00 18.00 178.00 178.00 138.00
26 Jul 2011 162.50 160.00 18.00 178.00 178.00 138.00
25 Jul 2011 160.20 160.00 18.00 178.00 178.00 138.00
22 Jul 2011 161.00 160.00 18.00 178.00 178.00 138.00
21 Jul 2011 163.00 160.00 18.00 178.00 178.00 138.00
20 Jul 2011 165.65 160.00 18.00 178.00 178.00 138.00
19 Jul 2011 165.90 160.00 18.00 178.00 178.00 138.00
18 Jul 2011 162.00 160.00 18.00 178.00 178.00 138.00
15 Jul 2011 165.00 160.00 18.00 178.00 178.00 138.00
14 Jul 2011 166.15 160.00 18.00 178.00 178.00 138.00
13 Jul 2011 167.15 160.00 18.00 178.00 178.00 138.00
12 Jul 2011 161.50 160.00 18.00 178.00 178.00 138.00
11 Jul 2011 162.50 160.00 18.00 178.00 178.00 138.00
8 Jul 2011 164.75 160.00 18.00 178.00 178.00 138.00
7 Jul 2011 161.65 160.00 18.00 178.00 178.00 138.00
6 Jul 2011 163.50 160.00 18.00 178.00 178.00 138.00
5 Jul 2011 165.50 160.00 18.00 178.00 178.00 138.00
4 Jul 2011 162.50 160.00 18.00 178.00 178.00 138.00
1 Jul 2011 160.50 160.00 18.00 178.00 178.00 138.00
30 Jun 2011 157.05 160.00 18.00 178.00 175.05 138.00
29 Jun 2011 168.50 160.00 18.00 178.00 178.00 138.00
28 Jun 2011 164.25 160.00 18.00 178.00 178.00 138.00
27 Jun 2011 158.50 160.00 18.00 178.00 176.50 138.00
24 Jun 2011 163.50 160.00 18.00 178.00 178.00 138.00
23 Jun 2011 164.10 160.00 18.00 178.00 178.00 138.00
22 Jun 2011 164.00 160.00 18.00 178.00 178.00 138.00
21 Jun 2011 174.00 160.00 18.00 178.00 178.00 138.00
20 Jun 2011 172.40 160.00 18.00 178.00 178.00 138.00
17 Jun 2011 174.50 160.00 18.00 178.00 178.00 138.00
16 Jun 2011 173.50 160.00 18.00 178.00 178.00 138.00
15 Jun 2011 175.00 160.00 18.00 178.00 178.00 138.00
14 Jun 2011 177.25 160.00 18.00 178.00 178.00 138.00
13 Jun 2011 180.35 160.00 18.00 178.00 178.00 138.00
10 Jun 2011 184.45 160.00 18.00 178.00 178.00 138.00
9 Jun 2011 189.40 160.00 18.00 178.00 178.00 138.00
8 Jun 2011 189.00 160.00 18.00 178.00 178.00 138.00
7 Jun 2011 184.50 160.00 18.00 178.00 178.00 138.00
6 Jun 2011 189.50 160.00 18.00 178.00 178.00 138.00
3 Jun 2011 193.00 160.00 18.00 178.00 178.00 138.00
2 Jun 2011 191.45 160.00 18.00 178.00 178.00 138.00
1 Jun 2011 187.65 160.00 18.00 178.00 178.00 138.00
31 May 2011 189.50 160.00 18.00 178.00 178.00 138.00
27 May 2011 197.00 160.00 18.00 178.00 178.00 138.00
26 May 2011 198.50 160.00 18.00 178.00 178.00 138.00
25 May 2011 193.25 160.00 18.00 178.00 178.00 138.00
24 May 2011 191.35 160.00 18.00 178.00 178.00 138.00
23 May 2011 193.50 160.00 18.00 178.00 178.00 138.00
20 May 2011 194.00 160.00 18.00 178.00 178.00 138.00
19 May 2011 193.50 160.00 18.00 178.00 178.00 138.00
18 May 2011 191.00 160.00 18.00 178.00 178.00 138.00
17 May 2011 180.50 160.00 18.00 178.00 178.00 138.00
16 May 2011 177.75 160.00 18.00 178.00 178.00 138.00
13 May 2011 175.25 160.00 18.00 178.00 178.00 138.00
12 May 2011 172.50 160.00 18.00 178.00 178.00 138.00
11 May 2011 175.65 160.00 18.00 178.00 178.00 138.00
10 May 2011 179.00 160.00 18.00 178.00 178.00 138.00
9 May 2011 177.75 160.00 18.00 178.00 178.00 138.00
6 May 2011 168.75 160.00 18.00 178.00 178.00 138.00
5 May 2011 167.60 160.00 18.00 178.00 178.00 138.00
4 May 2011 168.15 160.00 18.00 178.00 178.00 138.00
3 May 2011 172.00 160.00 18.00 178.00 178.00 138.00
28 Apr 2011 169.65 160.00 18.00 178.00 178.00 138.00
27 Apr 2011 174.60 160.00 18.00 178.00 178.00 138.00
26 Apr 2011 180.00 160.00 18.00 178.00 178.00 138.00
21 Apr 2011 177.40 160.00 18.00 178.00 178.00 138.00
20 Apr 2011 178.25 160.00 18.00 178.00 178.00 138.00
19 Apr 2011 174.10 160.00 18.00 178.00 178.00 138.00
18 Apr 2011 170.75 160.00 18.00 178.00 178.00 138.00
15 Apr 2011 164.50 160.00 18.00 178.00 178.00 138.00
14 Apr 2011 165.50 160.00 18.00 178.00 178.00 138.00
13 Apr 2011 166.90 160.00 18.00 178.00 178.00 138.00
12 Apr 2011 167.75 160.00 18.00 178.00 178.00 138.00
11 Apr 2011 170.00 160.00 18.00 178.00 178.00 138.00
8 Apr 2011 169.50 160.00 18.00 178.00 178.00 138.00
7 Apr 2011 169.25 160.00 18.00 178.00 178.00 138.00
6 Apr 2011 171.35 160.00 18.00 178.00 178.00 138.00
5 Apr 2011 171.05 160.00 18.00 178.00 178.00 138.00
4 Apr 2011 171.20 160.00 18.00 178.00 178.00 138.00
1 Apr 2011 167.50 160.00 18.00 178.00 178.00 138.00
31 Mar 2011 167.55 160.00 18.00 178.00 178.00 138.00
30 Mar 2011 162.50 160.00 18.00 178.00 178.00 138.00
29 Mar 2011 161.75 160.00 18.00 178.00 178.00 138.00
28 Mar 2011 163.00 160.00 18.00 178.00 178.00 138.00
25 Mar 2011 161.75 160.00 18.00 178.00 178.00 138.00
24 Mar 2011 158.00 160.00 18.00 178.00 176.00 138.00
23 Mar 2011 156.25 160.00 18.00 178.00 174.25 138.00
22 Mar 2011 156.00 160.00 18.00 178.00 174.00 138.00
21 Mar 2011 159.25 160.00 18.00 178.00 177.25 138.00
18 Mar 2011 163.30 160.00 18.00 178.00 178.00 138.00
17 Mar 2011 158.20 160.00 18.00 178.00 176.20 138.00
16 Mar 2011 148.60 160.00 18.00 178.00 166.60 138.00
15 Mar 2011 145.00 160.00 18.00 178.00 163.00 138.00
14 Mar 2011 151.00 160.00 18.00 178.00 169.00 138.00
11 Mar 2011 153.50 160.00 18.00 178.00 171.50 138.00
10 Mar 2011 154.50 160.00 18.00 178.00 172.50 138.00
9 Mar 2011 155.95 160.00 18.00 178.00 173.95 138.00
8 Mar 2011 157.50 160.00 18.00 178.00 175.50 138.00
7 Mar 2011 161.25 160.00 18.00 178.00 178.00 138.00
4 Mar 2011 163.00 160.00 18.00 178.00 178.00 138.00
3 Mar 2011 163.30 160.00 18.00 178.00 178.00 138.00
2 Mar 2011 161.00 160.00 18.00 178.00 178.00 138.00
1 Mar 2011 163.00 160.00 18.00 178.00 178.00 138.00
28 Feb 2011 164.50 160.00 18.00 178.00 178.00 138.00
25 Feb 2011 166.75 160.00 18.00 178.00 178.00 138.00
24 Feb 2011 163.75 160.00 18.00 178.00 178.00 138.00
23 Feb 2011 159.25 160.00 18.00 178.00 177.25 138.00
22 Feb 2011 160.00 160.00 18.00 178.00 178.00 138.00