Question
1. I have gone short on 150 contracts of the May 21 Lean Hogs at 95.95. (NOTE: Lean Hogs are quoted at cents per pound
1. I have gone short on 150 contracts of the May 21 Lean Hogs at 95.95.
(NOTE: Lean Hogs are quoted at cents per pound so 95.95 = $ 0.9595 per lb was my shorting price for 150 contracts).
a) If I were to cover all 150 contracts at a price of 100.50 what is my ROI? (10 pts)
b) What instructions should I have put in place to ensure that the maximum loss this transaction would have incurred is about 25%?
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Fundamentals Of Financial Management Concise
Authors: Eugene F. Brigham, Joel F. Houston
11th Edition
0357517717, 9780357517710
