1. Use the futures prices (in cents) of live hogs at the end of June 2021...

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1. Use the futures prices (in cents) of live hogs at the end of June 2021 to calculate the expected growth rate in prices between September and November July 2021 61.20 59.60 61.70 September 2021 November 2021 January 2022 March 2022 May 2022 62.67 63.42 63.40 2. Use the futures prices in problem 1 for this problem. Suppose that a certain breeding decision would involve an investment of $125,000 with expenditures of $15,000 in 3 months, 6 months, and 9 months. The result is expected to be more hogs available for sale at the end of the year. There are two major uncertainties: number of extra hogs available for sale and the price per pound. The expected number of pounds is 250,000 and the expected price of hogs in 1 year is 63.40 cents per pound. Assuming that the risk-free rate of interest is 10% per annum, what is the value of the investment (in thousands of dollars)? 1. Use the futures prices (in cents) of live hogs at the end of June 2021 to calculate the expected growth rate in prices between September and November July 2021 61.20 59.60 61.70 September 2021 November 2021 January 2022 March 2022 May 2022 62.67 63.42 63.40 2. Use the futures prices in problem 1 for this problem. Suppose that a certain breeding decision would involve an investment of $125,000 with expenditures of $15,000 in 3 months, 6 months, and 9 months. The result is expected to be more hogs available for sale at the end of the year. There are two major uncertainties: number of extra hogs available for sale and the price per pound. The expected number of pounds is 250,000 and the expected price of hogs in 1 year is 63.40 cents per pound. Assuming that the risk-free rate of interest is 10% per annum, what is the value of the investment (in thousands of dollars)?

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Question 1 1 Calculate the expected growth rate a September price PV 5960 b November ... View the full answer