|
| I would agree somewhat if the price used to calculate an ACRE payment was determined from the closing price of the CBOT on the day Dec. options expire. Taking a yearly average is likely to raise the ACRE price off harvest low substantionally IMO, therefore reducing potential payments. You are trying to compare a yearly average price to a specific price the farmer recieves when selling the put. I do not see how one can fairly compare "value" between those. And that is not even taking in to account the fact that BOTH on farm yields and state yields have to cooperate to get any payment at all. Put gains could care less about on farm or state yields.
Edited by sparrell 8/6/2009 23:21
| |
|
ACRE (again)
