Chapter five explains how to calculate the minimum expected margin and the net margin on livestock hedged with LGM. Also, the chapter examines how price changes affect gross margins.

Topics covered include:

• how price changes affect gross margins;
• how to calculate the minimum expected margin and the net margin on livestock hedged with LGM under various market conditions; and
• some final considerations when purchasing LGM.

• Chapter Five Text
• Chapter Five Slide Presentation
• Check for Understanding
• Answers
• Chapter Five Lecture

• To view the printed course materials and slides, you will need the Adobe Acrobat Reader
• To view the videos, you will need the free RealPlayer software available from Real.com.