11. Brass is an alloy of 67% copper and 33% zinc. Note the following information: Contract Symbol Delivery Months Amount Tic Size Tic Value Copper HG N, D, Ja, Mr, My, JI, S 25,000 lbs. US$0.0005/16 $12.50/tic Zinc ZS N, D, Ja, My, Ap, Au, S 25 tons US$0.50/ton $12.50/Tic Assume r=.695, S6 = .785 and ss = .562. If you need to hedge against a delivery of 650 tons of brass tube and sheet arriving in May, which contract(s) - and how many - would you use? a. 35 ZS May contract and 9 HG May contracts b. 15 ZS Apr contracts and 45 HG May contracts c. 35 HG May contracts and 9 ZS May contracts d. None of the above 12. What kind of a hedge described in the problem 11? a. Long hedge b. Short hedge c. Cross hedge d. Arbitrage 11. Brass is an alloy of 67% copper and 33% zinc. Note the following information: Contract Symbol Delivery Months Amount Tic Size Tic Value Copper HG N, D, Ja, Mr, My, JI, S 25,000 lbs. US$0.0005/16 $12.50/tic Zinc ZS N, D, Ja, My, Ap, Au, S 25 tons US$0.50/ton $12.50/Tic Assume r=.695, S6 = .785 and ss = .562. If you need to hedge against a delivery of 650 tons of brass tube and sheet arriving in May, which contract(s) - and how many - would you use? a. 35 ZS May contract and 9 HG May contracts b. 15 ZS Apr contracts and 45 HG May contracts c. 35 HG May contracts and 9 ZS May contracts d. None of the above 12. What kind of a hedge described in the problem 11? a. Long hedge b. Short hedge c. Cross hedge d. Arbitrage