039ab1fb__Grain_Division___South_Beloit__Advantages
Optional Price Contract [Contract Description] Establish a minimum futures price for a quantity of grain you wish to sell during a specific delivery period by purchasing a put option. [Disadvantages] fee for financing the option the option may expire without the market falling to a point to recover the premium subject to basis risk [Advantages] 
limits downside risk of lower futures benefit from basis improvements no margin calls
Demeter - Grain Facilites and Commercial Warehousing | Grain Division - South Beloit
Advantages