Look at the Feb Lean Hog chart below. Then consider the current market data. Evaluate your expected net price from a short hedge, a put, a fence, and a synthetic put. Tell me the advantages and disadvantages of a fence and of a synthetic put. Relative to the current market information, which would you choose and why?

70 69 mpat "We . Expected Basis = -$2.00 68 67 66 65 64 63 offerte 62 61 60 59 Feb Lean Hogs 10/8/09 $60.00 58 57 56 56 55 54 Strike Put prem Call Prem 2.75 58 3.50 60 4.40 4.35 62 3.40 64 2.65 53 52 51 50 49 Apr-14 May-05 May-26 Jun-16 Jul-07 Jul-28 Aug-18 Sep-08 Sep-29 70 69 mpat "We . Expected Basis = -$2.00 68 67 66 65 64 63 offerte 62 61 60 59 Feb Lean Hogs 10/8/09 $60.00 58 57 56 56 55 54 Strike Put prem Call Prem 2.75 58 3.50 60 4.40 4.35 62 3.40 64 2.65 53 52 51 50 49 Apr-14 May-05 May-26 Jun-16 Jul-07 Jul-28 Aug-18 Sep-08 Sep-29