|
Ontario's middle east | Ridge, I think you have it right. I'm not gonna pretend I know how this will play out but I can suggest a couple scenarios.
1. We see significant planting delays and get exercised on. Then in June, the market decides rain makes grain and we build the carry and set the spread. (buy Z/ sell N)
2. Planting goes OK, we get to June and build the carry, so we set the prespread. We get a summer drought scare and get exercised on. The long Z of the spread is canceled by the call and you are net short N. If you don't get exercised you can just sell Z and be short the N and have good carry captured........ Something one should consider anyways. | |
|