| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Livestock Revenue Insurance
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| Autores: |
Hart, Chad E.
Babcock, Bruce A.
Hayes, Dermot J.
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| Data: |
2006-07-13
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| Ano: |
2000
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| Palavras-chave: |
Insurance
Livestock
Revenue
Options
Asian basket option
Premiums
Livestock Production/Industries
Risk and Uncertainty
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| Resumo: |
This study outlines several possible structures for livestock revenue insurance. The policies take the form of an exotic optionan Asian basket option. The actuarially fair premiums for these policies are equal to the prices of the options they represent. Due to the complexity of pricing Asian basket options, we have combined two techniques for pricing options to reach the actuarially fair premiums. Projected premiums, producer welfare, and program efficiency are evaluated for the insurance products and existing market tools. Using efficiency ratios and certainty equivalent returns, we compare the insurance policies to strategies involving existing futures and options.
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| Tipo: |
Working or Discussion Paper
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| Idioma: |
Inglês
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| Identificador: |
23057
http://purl.umn.edu/18356
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| Editor: |
AgEcon Search
|
| Relação: |
Iowa State University>Center for Agricultural and Rural Development>CARD Working Paper Series
CARD Working Paper 99-WP 224
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| Formato: |
34
application/pdf
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