Related Experiment Video
Updated: Oct 12, 2026

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
Managing financial risk with options on futures
1James J. Nance College of Business, Cleveland State University, OH, USA.
Abstract:
With the rise of managed care and capitation, more providers will be sharing in the financial risk of providing care. To help protect their organizations from the risk of unexpectedly high utilization under such a fixed-payment system, healthcare financial managers soon will be able to use options on futures contracts. These contracts provide wide profit potential but limited loss potential. Before investing in options on futures, however, healthcare financial managers should consider issues such as basis risk and trading costs.
Related Concept Videos
Actuarial Approach
Consider the example of a high-risk surgical procedure with significant early-stage mortality. A two-year clinical study is conducted,...
Design Example: Analyzing Capacity Contours for Flood Risk Assessment
Derivatives of Logarithmic Functions
First Derivative Test: Problem Solving
Mathematical Modeling: Problem Solving
Derivatives