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Arable Farming
Cropping
£200 wheat before Christmas?
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<blockquote data-quote="Condi" data-source="post: 3145090" data-attributes="member: 13446"><p>Define 'prohibitively expensive'? </p><p></p><p>I would argue some options are very cheap at the moment. The futures price is not expensive, the time to expiry doesnt change from year to year, so that only leaves volatility and its not a particularly volatile market - from memory rapeseed options are about 16% vol on the nearby, and 12% on the Nov-17. </p><p></p><p>Where they are not cheap is London wheat options because the liquidity isnt there, if you want to buy some you've got to pay up to the seller. I think Nov-17 options are about a tenner for wheat and £15/£16 for rape.</p></blockquote><p></p>
[QUOTE="Condi, post: 3145090, member: 13446"] Define 'prohibitively expensive'? I would argue some options are very cheap at the moment. The futures price is not expensive, the time to expiry doesnt change from year to year, so that only leaves volatility and its not a particularly volatile market - from memory rapeseed options are about 16% vol on the nearby, and 12% on the Nov-17. Where they are not cheap is London wheat options because the liquidity isnt there, if you want to buy some you've got to pay up to the seller. I think Nov-17 options are about a tenner for wheat and £15/£16 for rape. [/QUOTE]
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Arable Farming
Cropping
£200 wheat before Christmas?
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