Posted 7/30/2020 09:27 (#8404560 - in reply to #8404529) Subject: RE: Currency war
Not a big fan of that last graph. It doesn’t explain how they are actually calculating the value of the derivative exposure. Puts and calls are all derivatives. So how does one value a corn put at say $3? Is the exposure the full $3? Does the put seller have nearly unlimited exposure since theoretically there is no limit. Is the grain market more or less stable because their is more derivative exposure than the actual value of the physical market?