Charlie,
For 80% & 90% EPO contracts I see them rise and fall as the futures move on a daily base.
One would assume that if the premiums paid rise because the futures fall... then some kind of relationship exists and that a lock in of the PRO is involved when buying a EPO.
However... checking at my local elevator reveals that the EPO is paid on the PRO in effect when delivery receipt is given... NOT when the EPO is bought.
SO when the CWB charged me an extra $1/t ($3 instead of $2) a 33% increase because of falling futures... as soon as the PRO comes out each month... the CWB resets the 80% EPO I get paid on.
How can this be? THis is a clear case of double dipping... into my bank account.... isn't it?
For 80% & 90% EPO contracts I see them rise and fall as the futures move on a daily base.
One would assume that if the premiums paid rise because the futures fall... then some kind of relationship exists and that a lock in of the PRO is involved when buying a EPO.
However... checking at my local elevator reveals that the EPO is paid on the PRO in effect when delivery receipt is given... NOT when the EPO is bought.
SO when the CWB charged me an extra $1/t ($3 instead of $2) a 33% increase because of falling futures... as soon as the PRO comes out each month... the CWB resets the 80% EPO I get paid on.
How can this be? THis is a clear case of double dipping... into my bank account.... isn't it?