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Central Ohio | So with normal new crop options (put), at expiration, if the dec21 corn futures are 1.00 below the strike price, long put option is worth a buck.
But how does it work out practically with a July short dated new crop option, for example. Based on dec21 corn futures but expiring endish of June. If strike was 6.30 and dec21 futures were at 5.30 at option expiration in June, approx what would that option be worth? I do realize there are several factors that are at play. Is it the buck...or less? Or buck plus some time value even though expiring?
Trying to get my head around the mechanics of these things. | |
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How do Short Dated New Crop Options behave?
