1. I have gone short on 150 contracts of the August Lean Hogs at 102.65 per lb.
a) If I were to cover (close) all 150 contracts out at a price of 104.90 per lb., what is my ROI, both in dollars and percentage? (10 pts)
b) What instructions should I have put in place to ensure that the maximum loss this transaction could have incurred is close to 22%? (10 pts)
