(MSU Extension, 2004-09) Buschena, David; McNew, Kevin
Put options have been recommended as a substitute for price support programs (Gardner, 1977; also some more recent comments?), and subsidized option purchases have received some support in lieu of subsidized insurance programs (cite?). Put options are an interesting alternative to price supports because their market-determined price
levels allow for flexibility and adjustments to relevant current and expected market conditions. Options markets should also be relatively free from the bureaucratic decision processes needed for administration of commodity price supports.
