Hedging with Futures: An Experiential Learning Game
John Michael Riley
Oklahoma State University
JEL Codes: A20, Q02, Q13
Keywords: Experiential learning, futures, hedging, teaching
Publish Date: January 7, 2020
Volume 2, Issue 2
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Abstract
Hedging is often an integral concept in agricultural futures and marketing courses as well as extension marketing workshops. Textbook and chalkboard examples offer students of these courses the ability to understand the concept and learn the mathematics. However, this mode of instruction is less intuitive and does not have a real-world feel. The purpose of this paper is to present an interactive hedging game that was developed to provide students with a more realistic hedging experience that improves the understanding of the mechanics of hedging. Under the premise of an eastern Nebraska corn producer using actual data, a spreadsheet was designed that displays market information to the students who then must make decisions about the number of futures contracts to trade. Pre- and post-game results indicate a positive learning outcome, and students responded favorably when asked if the game enhanced their understanding of hedging.
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Articles in this issue
Using Data Analytics and Decision-Making Tools for Agribusiness Education
Matthew S. Elliott and Lisa M. Elliott
Personalizing Online Classes: The Use of Evaluation and Participation Tools
Luis Peña-Lévano
Teaching Information Literacy: A Case Study of the Ripple Effect in Teamwork
Christiane Schroeter, Lindsey Higgins, Hannah Hank, and Caitlin Stevenson
Facilitating Higher Order Learning: Examining Student Outcomes after a Course Redesign
Anna Josephson, Larry DeBoer, Dave Nelson, and Angelika Zissimopoulos
Hedging with Futures: An Experiential Learning Game
John Michael Riley
The Do Now: A Simple, but Effective Active Learning Strategy
LaPorchia A. Collins