039ab1fb__Grain_Division___South_Beloit__Advantages
Maximum Price Contract [Contract Description] Collect a premium by selling a call option to establish a maximum price in conjunction with entering into a basis contract. [Disadvantages] fee for financing the option limited upside potential based on strike price of option unable to price basis contract until after option expires [Advantages] 
use the premium to obtain a more favorable basis level can still benefit from futures gains up to the strike price of the option no margin calls
Demeter - Grain Facilites and Commercial Warehousing | Grain Division - South Beloit
Advantages