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A pig farmer expects to have 90,000 pounds of live hogs to sell in three months. The live hogs futures contract on the Chicago Mercantile

A pig farmer expects to have 90,000 pounds of live hogs to sell in three months. The live hogs futures contract on the Chicago Mercantile Exchange is for the delivery of 30,000 pounds of hogs. How can the farmer use this for hedging? From the farmer viewpoint, what are the pros and cons of hedging?

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