A Study On The Hedging Mechanism Of The Risk Of Agriculture Products Price Insurance Based On Futures Option Market

In recent years,with the continuous development of the insurance market,the birth of a number of new types of insurance products and insurance,but also a new insurance issues.The prices of agricultural insurance as a new way of insurance,has launched a pilot run in the country,but due to the systemic risk inherent in the insurance price,resulting in the possibility of huge payment greatly,for the promotion and implementation of insurance prices bring great resistance.In this paper,the prices of agricultural insurance risk hedging mechanism of reverse transaction based on futures options market as the breakthrough point,through the research on risk management of agricultural product prices,the price of agricultural products insurance risk identification and assessment,analysis and comparison of the traditional methods of risk management,the use of futures and options market can effectively hedge the prices of agricultural insurance risk.And the price of corn insurance as a hedge effect evaluation simulation.In this paper,we use the analysis methods of economics,statistics and econometrics,with the help of statistical software STATA and Easyfit,we focus on the following three aspects:Firstly,this paper introduces the risk management of agricultural product price insurance,introduces the risk management to establish the price of agricultural products,insurance risk identification,the prices of agricultural insurance risk assessment and the price of agricultural products insurance risk management decisions in the application of statistical methods to evaluate the U.S.corn futures price risk,analysis of traditional agriculture insurance risk management methods are limited in the prices of agricultural products in the insurance,futures and options market to hedge the price of agricultural products insurance risk.Secondly,summarize the mechanism of futures and options market to hedge the price of agricultural products insurance risk,including the prices of agricultural insurance risk hedging principle,predict the price,the settlement price and rate setting,based on the business process of the insurance company,set the hedge effect evaluation model.Finally,simulate the hedge use of futures price data of China's corn 2015-2016,get the total profit and loss of agricultural insurance companies under different hedge ratio,the total profit and loss analysis of insurance companies use futures options market to hedge the price of agricultural products insurance risk effect.The main conclusions are as follows:(a)the risk of price of agricultural products is systematic,leading to price risk of agricultural products greatly,and the prices of agricultural products are highly correlated risk borne by the insurance company for the price of agricultural products agricultural insurance risk also exist great risk,must use risk management tools and means of dispersing or transfer;(b)agricultural insurance risk management the traditional method is not applicable to the price of agricultural products insurance risk,the more or less shortcomings and deficiencies,so it is necessary to study the management of agricultural product price risk insurance agricultural insurance risk management method;(c)futures options as hedging tools that can be effectively transferred to market risk through market speculators,the the agricultural insurance company can achieve in their risk management objectives.