Urcola, Hernan A.; Irwin, Scott H. - In: Journal of Agricultural and Applied Economics 42 (2010) 04
This article tests the efficiency of the hog options market and assesses the impact of the 1996 contract redesign on … efficiency. We find that the hog options market is efficient, but some options yielded excess returns during the live hogs period … the new contract improving the efficiency of the market. However, other market conditions such as lower transaction costs …