Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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%?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started