By Erik Norland
Nearly all options markets exhibit some kind of natural skewness. For example, out-of-the-money (OTM) put options on equity index futures are typically more expensive than OTM call options: investors typically fear a sudden fall in stock prices more than a sudden rise and, hence, are willing to pay more for downside than upside protection. In agricultural markets, skew tends to work the opposite way. On corn, soy, and wheat options, for example, OTM call options are usually more expensive than OTM puts. Food buyers fear a sudden spike in the price of