Forex and Futures

Kendall Ford, Aaron Pomeroy, and Jack Long

Forex and Futures

What is a option

*Right vs. Obligation*Premium to buy*Certain quantity at a future date.*European vs. American

Weather Effects on Crop Futures

Factors of Crop YieldHigher CO2 levels can increase yields.

More extreme temperature and precipitation

Dealing with drought

Many weeds, pests and fungi thrive under warmer temperatures, wetter climates, and increased CO2 levels.

Corn/Hog Ratio• Definition of 'Corn/Hog Ratio'• A feed ratio used to determine the profitability of raising

livestock. The corn/hog ratio is the price of one hundred pounds of hog (cwt) divided by the price of a bushel of corn. The ratio is used to help farmers determine the value of a crop of corn compared to the value of a hog that they would have to feed with the same crop of corn.

• For example, if the price of a hog is $50/cwt and the price of a bushel of corn is $4, the corn/hog ratio would be $50/$4, or 12.5.

BAF OPTIONS AND FUTURES DIVISION

*Debt Crisis and Euro

*The Eurozone

*17 countries all holding the Euro as their common currency *Formed in 1999 with various reorganizations since

2001

*Crisis

*Debt and Austerity clauses *Current Negotiations

*Effects

*Outlook*Unsure about Greece’s future in the Euro*Sweden believes the Greek exit is all but certain*Germany maintains that Euro can’t handle Greek exit

*Euro/USD remains a highly volatile area of trade *Euro has rallied from low of 1.2089 in August to

1.3035 on Friday