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1930b because of a lack of regulations, but that is not the case with the new system. The Commission will oversee the exchanges which are trading the new options.
One example of how options work is a cotton grower, who buys an option to sell at 70 cents a pound. If prices drop below 70 cents at harvest, he could sell the option at a gain because the value of the option will increase when the prices fall.
Exchanges are scheduled to begin trading options by the end of October on soybeans, corn, cattle, hogs, wheat, and cotton. Farmers need to learn and
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