Math/Physic/Economic/Statistic Problems
You MUST SHOW all the work for full credit.
1. You have gone short on 150 contracts of the August Lean Hogs at 102.65 per lb.
a) If you were to cover (close) all 150 contracts out at a price of 104.90 per lb., what is your ROI, both in
dollars and percentage?
b) What instructions should you have put in place to ensure that the maximum loss this transaction could have incurred is close to 22%?