#11) US Airways will purchase 2,000,000 gallons of jet fuel in 1 month and will hedge with heating oil futures, which are for 42,000 gallons. From historical data _Jet = 0.0263, _Heat = 0.0323, and = 0.95. S₀ on jet fuel = $1.94 and F₀ on heating oil = $2.04, what is the optimal number of contracts assuming daily settlement? (Round to nearest round # of contracts with X.499 down to X and above up to X+1)

PLEASE SHOW ALL FORMULA & WORK & EXPLANATIONS -----All rates are per annum with continuous compounding unless otherwise stated