Tip. You Can Trade Futures In Limit Down/up

How does the math work when we do trade synthetics on limit up / limit down?
We got notice that CZ8 synthetics are at 3.96 - 3.97. Under your suggestion, I can offset my long and will buy a put and sell a call, how do we achieve a level of 3.96? Ex: I will buy a 4.00 put for .29 and sell a 4.00 call and gain .28, so I will loose .01 on the premiums. 4.00 put would be exercised, 4.00 call not exercised yet, so board level limit down at 4.0825 would cost me .0825, I assume that the synthetic would be then at 4.0825 - .01 - .0825 3.99?
My math seems way off, can someone guide me on this? Also, what happens when the sold call gets in the money on the next trading session?
 
1) If you're doing the "synthetic short" at ~$3.96/bushel, you would be paying 4-cents more for the $4-put-option than the $4-call-option. The 28 & 29 premiums are not correct.
2) If you exercise the put option, you should also offset the call option if you do not want to have continued exposure to the market.
3) In hindsight, you should get out of losing positions before a price limit is touched.
 
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