Welcome to the CIH Hog Margin Simulation
Please take a moment to review the objective of this simulation, consult the instructions, and note the simulation rules. During the simulation, you’ll be able to access this information again.
Your Objective
In this simulation you are a hog producer that needs to protect your fourth quarter margin on 6 million pounds of pork. Your first trading decision starts in April and finishes by the middle of August.
Corn Volume Requirement:
Contract Coverage Rules
Each of the following strategies equals
5000 Bushels (1 contract) of coverage:
- 1 Long Futures
- 1 Long Call Option
- 1 Long Call Option Spread
- 1 Short Put Option
- 1 Long Call Option + 1 Short Put Option
- 1 Long Call Option Spread + 1 Short Put Option
Soybean Meal Volume Requirement:
Contract Coverage Rules
Each of the following strategies equals
100 Tons (1 contract) of coverage:
- 1 Long Futures
- 1 Long Call Option
- 1 Long Call Option Spread
- 1 Short Put Option
- 1 Long Call Option + 1 Short Put Option
- 1 Long Call Option Spread + 1 Short Put Option
Lean Hogs Volume Requirement:
Contract Coverage Rules
Each of the following strategies equals
40000 Pounds (1 contract) of coverage:
- 1 Short Futures
- 1 Long Put Option
- 1 Long Put Option Spread
- 1 Short Call Option
- 1 Long Put Option + 1 Short Call Option
- 1 Long Put Option Spread + 1 Short Call Option