need help with 7b

Q7. Suppose that a cattle feeder placed 400 feeder cattle on 03Jan2022 and planned to sell the fed cattle on 02 May 2022. Expected fed cattle weight is 1200 Ibs. per animal. On 03Jun2022,thecashpriceoffe catle was 140.25 cents/b, and the price of Aug 2022CME Live Catte futures was 147.25cents/lb.A 2022. The cattle feeder was worried that eash price of fed cattle might fall in May and hedged using Put hedge on 02 May 2022 while selling the fed animals in the cash market at the same time. As reported, the cash price of live catle and the Aug 2022 CME Live Cattle futures on 02 May 2022 were 140.00 centsilb. and 137.00 cents/ib, respectively. A put option on Aug 2022 CME Live Cattle with SP=150 cents/b. was trading at 10.50cents/b. on 02 May 2022 . Consider two short hedging strategies - (1) full hedging with a Put option (with SP = 150 cent/lb.) on Aug 2022CME Live Cattlo futures; and (2) delta hodging with the same Put option (with SP=150 cent/b.) on Aug 2022 CME Live Cattle futures. A. If the eattle feeder hedged her full cash position, how many put option contracts did she use? (4 Points) Answert NFCF=12 B. Using the following table, calcuinte the cattle foeder's net realized price per pound of fod cattle from full hedging. Use the Jan 03 and May 02 cash prices, futures prices, and option premiums as listed above. Fill the gaps, calculate cach revenue, gain/loss from hedging, and net realized price. (8 Points) Q6. The second page of the spread sheet (titled Put) sent to you by email lists daily futures prices (cents/lb.) of Aug 2022 CME Live Cattle futures contract and the premiums of a put option with SP=150 cents/lb. For each day, calculate the put options delta and hedge ratio in the spread sheet and list the average delta and the hedge ratio based on the average delta here. If you find an undefined value, replace that with a period. (5 points) Answer: Average =.78 HR=1.29 Q7. Suppose that a cattle feeder placed 400 feeder cattle on 03Jan2022 and planned to sell the fed cattle on 02 May 2022. Expected fed cattle weight is 1200 Ibs. per animal. On 03Jun2022,thecashpriceoffe catle was 140.25 cents/b, and the price of Aug 2022CME Live Catte futures was 147.25cents/lb.A 2022. The cattle feeder was worried that eash price of fed cattle might fall in May and hedged using Put hedge on 02 May 2022 while selling the fed animals in the cash market at the same time. As reported, the cash price of live catle and the Aug 2022 CME Live Cattle futures on 02 May 2022 were 140.00 centsilb. and 137.00 cents/ib, respectively. A put option on Aug 2022 CME Live Cattle with SP=150 cents/b. was trading at 10.50cents/b. on 02 May 2022 . Consider two short hedging strategies - (1) full hedging with a Put option (with SP = 150 cent/lb.) on Aug 2022CME Live Cattlo futures; and (2) delta hodging with the same Put option (with SP=150 cent/b.) on Aug 2022 CME Live Cattle futures. A. If the eattle feeder hedged her full cash position, how many put option contracts did she use? (4 Points) Answert NFCF=12 B. Using the following table, calcuinte the cattle foeder's net realized price per pound of fod cattle from full hedging. Use the Jan 03 and May 02 cash prices, futures prices, and option premiums as listed above. Fill the gaps, calculate cach revenue, gain/loss from hedging, and net realized price. (8 Points) Q6. The second page of the spread sheet (titled Put) sent to you by email lists daily futures prices (cents/lb.) of Aug 2022 CME Live Cattle futures contract and the premiums of a put option with SP=150 cents/lb. For each day, calculate the put options delta and hedge ratio in the spread sheet and list the average delta and the hedge ratio based on the average delta here. If you find an undefined value, replace that with a period. (5 points) Answer: Average =.78 HR=1.29