Analysis of Returns From Purchasing CBOT Corn Call Options at Harvest

Year	Day	CBOT MARCH Futures Price	CBOT MARCH At Money Call Option Premium*	CBOT MARCH Futures Price At Option Expire	CBOT MARCH Option Profit (Loss)	CBOT JULY Futures Price	CBOT JULY At Money Call Option Premium*	CBOT JULY Futures Price At Option Expire	CBOT JULY Option Profit (Loss)	Implied Volatlity of MARCH Call	Implied Volatlity of JULY Call
1981	02-Nov	$3.08	$0.11	$2.63	($0.12)	$3.28	$0.19	$2.75	($0.20)	17.11	19.73
1982	01-Nov	$2.29	$0.08	$2.75	$0.37	$2.43	$0.14	$3.15	$0.56	17.11	19.73
1983	01-Nov	$3.45	$0.13	$3.25	($0.14)	$3.38	$0.20	$3.53	($0.06)	17.11	19.73
1984	01-Nov	$2.85	$0.10	$2.65	($0.11)	$2.95	$0.14	$2.74	($0.15)	15.85	16.25
1985	01-Nov	$2.44	$0.06	$2.39	($0.07)	$2.50	$0.09	$2.35	($0.10)	12.20	11.90
1986	03-Nov	$1.83	$0.08	$1.50	($0.09)	$1.91	$0.13	$1.83	($0.14)	21.00	22.95
1987	02-Nov	$1.84	$0.12	$1.99	$0.03	$1.94	$0.21	$3.45	$1.29	29.62	35.54
1988	01-Nov	$2.90	$0.10	$2.73	($0.11)	$2.90	$0.16	$2.26	($0.17)	15.79	18.95
1989	01-Nov	$2.42	$0.09	$2.45	($0.07)	$2.50	$0.16	$2.82	$0.14	18.10	21.92
1990	01-Nov	$2.39	$0.08	$2.40	($0.09)	$2.51	$0.14	$2.37	($0.15)	15.77	19.24
1991	01-Nov	$2.60	$0.08	$2.64	($0.06)	$2.70	$0.15	$2.51	($0.16)	14.90	18.24
1992	02-Nov	$2.21	$0.07	$2.12	($0.08)	$2.33	$0.13	$2.20	($0.14)	13.50	17.91
1993	01-Nov	$2.70	$0.09	$2.88	$0.08	$2.73	$0.15	$2.58	($0.16)	16.09	17.30
1994	01-Nov	$2.27	$0.07	$2.34	($0.01)	$2.40	$0.12	$2.79	$0.26	14.00	16.79
1995	01-Nov	$3.43	$0.13	$3.81	$0.24	$3.38	$0.21	$4.66	$1.06	17.55	20.66
1996	01-Nov	$2.70	$0.11	$2.92	$0.11	$2.81	$0.16	$2.66	($0.17)	18.00	18.90
1997	03-Nov	$2.95	$0.15	$2.67	($0.16)	$3.05	$0.22	$2.54	($0.23)	22.00	23.90

Avg.		$2.61	$0.10	$2.59	($0.02)	$2.69	$0.16	$2.78	$0.09	17.39	19.98

1998	02-Nov	$2.28	$0.10	____	____	$2.41	$0.17	____	____	20.38	23.12

* Since CBOT options didn't begin trading until 1984, premiums for 1981-1983 are based an implied volatility of 17.11% or March and 19.73% for July options. Premiums were estimated for "synthetic" call options whose strike prices were equal to the futures prices on November 1.

Analysis of Returns From Storing Corn In Kansas City From Harvest Until Mid-February and Mid-June

	Store Until Mid-February					Store Until Mid-June
Year	Change in Price*	Total Commrcl. Storage Costs@	Total On-Farm Storage Costs#	Commrcl. Storage Profit (loss)	On-Farm Storage Profit (loss)	Change in Price*	Total Commrcl. Storage Costs@	Total On-Farm Storage Costs#	Commrcl. Storage Profit (loss)	On-Farm Storage Profit (loss)
1981	$0.06	$0.22	$0.22	($0.16)	($0.16)	$0.28	$0.45	$0.36	($0.17)	($0.08)
1982	$0.54	$0.18	$0.17	$0.36	$0.37	$0.97	$0.36	$0.26	$0.61	$0.71
1983	($0.24)	$0.21	$0.21	($0.45)	($0.45)	$0.07	$0.44	$0.33	($0.37)	($0.26)
1984	($0.04)	$0.20	$0.19	($0.24)	($0.23)	$0.04	$0.41	$0.30	($0.37)	($0.26)
1985	$0.05	$0.16	$0.16	($0.11)	($0.11)	$0.22	$0.34	$0.23	($0.12)	($0.01)
1986	($0.14)	$0.13	$0.13	($0.27)	($0.27)	$0.31	$0.27	$0.17	$0.04	$0.14
1987	$0.25	$0.15	$0.14	$0.10	$0.11	$1.55	$0.30	$0.19	$1.25	$1.36
1988	($0.04)	$0.18	$0.18	($0.22)	($0.22)	($0.13)	$0.38	$0.27	($0.51)	($0.40)
1989	$0.00	$0.18	$0.17	($0.18)	($0.17)	$0.33	$0.36	$0.25	($0.03)	$0.08
1990	$0.12	$0.16	$0.16	($0.04)	($0.04)	$0.21	$0.34	$0.24	($0.13)	($0.03)
1991	$0.14	$0.16	$0.15	($0.02)	($0.01)	$0.08	$0.32	$0.21	($0.24)	($0.13)
1992	$0.17	$0.13	$0.13	$0.04	$0.04	$0.15	$0.26	$0.17	($0.11)	($0.02)
1993	$0.35	$0.14	$0.14	$0.21	$0.21	$0.06	$0.29	$0.19	($0.23)	($0.13)
1994	$0.19	$0.15	$0.15	$0.04	$0.04	$0.73	$0.31	$0.20	$0.42	$0.53
1995	$0.45	$0.19	$0.18	$0.26	$0.27	$1.51	$0.39	$0.28	$1.12	$1.23
1996	$0.30	$0.16	$0.16	$0.14	$0.14	$0.07	$0.34	$0.23	($0.27)	($0.16)
1997	($0.01)	$0.17	$0.16	($0.18)	($0.17)	($0.11)	$0.34	$0.23	($0.45)	($0.34)

Average	$0.13	$0.17	$0.16	($0.04)	($0.04)	$0.37	$0.35	$0.24	$0.03	$0.13

1998	_____	$0.15	$0.14	_____	_____	_____	$0.30	$0.19	_____	_____

* Change in price is based on Kansas City #2 yellow corn prices on or about Nov. 1, Feb. 22, and Jun. 22.
@ Storage costs are based on (1) an elevator charge based on UGSA rates for KS country elevators; and (2) bank prime rate for November x the November 1 corn price x time in storage.
# On-Farm storage costs are based on a single, one-time, in-out cost of $.09; and (2) bank prime rate for November x the November 1 corn price x time in storage.