3. When there is no futures contract on the asset being hedged, choose the contract whose futures price is most highly correlated. This is known as cross-hedging. What is the intuition to obtain the optimal hedging ratio of cross-hedging? (a) Minimizes the variance of the value of the hedged position. (b) Maximizes the variance of the value of the hedged position. (c) Maximizes the value of the hedged position. (d) Maximizes the value of the unhedged position.