A Review of the New Corn Yield Insurance Futures and Options
On June 2, 1995, the Chicago Board of Trade (CBOT) expanded the spectrum of agricultural futures and options to cover financial risks clue to crop yield fluctuations. Yield insurance contracts for corn in the state oflowa were offered in 1995. Starting on january 19, 1996, corn yield insurance contracts for the entire United States and the states o[ Illinois, Indiana, Nebraska. and Ohio were established on the CBOT. This article explains what the yield insurance contracts are and how the colllracts work.