Near-north Ontario, French River | Expring worthless isnt necessarily a bad thing. IF they are worthless that means that markets havent fallen appreciably (sp?) since you purchased the put, so the 'insurance' that the put provided you ( by helping to put in a floor price for your grain) was not needed... If that makes any sense at all. Had the put retained or gained value that would have been offset by a corresponding loss on CBOT price. If you are truly hedging your grain, then whether or not the put has value when it expires is for the most part irrelevant. Its different then speculating. |
Puts
