Requires a margin deposit, and margin calls may occur if prices move higher. The plus references the fact that this is the minimum price expected from a cash sale projected by buying the put option. In the event of higher prices at harvest, the net price received will be higher. You can buy more or less price insurance by buying options with different strike prices and premiums. Definition of Terms Options traders use specific terminology when referring to options.
Buyers pay the premium to the writers of the option.
The price at which a person may buy or sell a put or call option for a known premium. John C. Nye, Dean and Director. Distributed in furtherance of Acts of Congress of May 8 and June 30, 1914. It is the policy of the Delaware Cooperative Extension System that no person shall be subjected to discrimination on the grounds of race, color, sex, disability, age, or national origin.