DeColores and welcome to the St Alban’s Cursillo Connection
Question 4: A spam meat manufacturer in the US is worried about the price of lean hogs rising and wants to lock in a price now. In one year the spam factory company intends to buy 2,000,000 pounds of hogs. CME futures on lean hogs that expire in one year have a notional principal of 40,000 pounds (about 18 metric tons) and currently trade at a price of 75.11 cents per pound. ................
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