|
West-Central Missouri | I put 2 of my corn units on an RP Policy. I may want to contract those bushels prior to harvest.
I want to make sure I am understanding this correctly.
124.7 ac. X 120 aph X 75% level = 11,223 bushels
31.4 ac. X 118 aph X 75% level = 2,779 bushels
Total 14,002 bushels at $4.70 or October price, whichever is higher.
Is that correct?
How would a person determine the value of an RP policy vs a call option?
I am thinking it would be a $4.70 ZCZ2025 call, purchased Oct 1, and either exercised or sold Oct. 31.
Can a person purchase a call that is active for a particular time period, ie the month of October?
Thanks | |
|
Understanding RP Covered Bushels Correctly
