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| If you use crop insurance for your initial sales, the premium will be less than an at the money put (to provide a floor), or an at the money call to "defend" sales. Attached is a spreadsheet you can place your "average" in. Place some level of coverage, "market" your insured bu., then see what happens if you produce less than your guaranteed bu.
This demonstrates why you are able to market safely with revenue coverage.
Attachments
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 CRC-RA Mkt Example.xls (29KB - 2295 downloads)
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Beginner marketing help????
