5. (10 points) Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the stock of the Frankfurter Sausage Company. Below of the recent price history of the two stocks. Percentage Price Change Month Frankfurter Sausage Swiss Roll January -10% 019% February -10% -5% March -10% 0% April 10% 0% May 10% 5% June 10% 10% a. Based on these six months, how large would your short position in Frankfurter Sausage need to be to hedge as far as possible against movements in the price of Swiss Roll? b. Discuss the amount of risk that would have been protected with that hedge 5. (10 points) Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the stock of the Frankfurter Sausage Company. Below of the recent price history of the two stocks. Percentage Price Change Month Frankfurter Sausage Swiss Roll January -10% 019% February -10% -5% March -10% 0% April 10% 0% May 10% 5% June 10% 10% a. Based on these six months, how large would your short position in Frankfurter Sausage need to be to hedge as far as possible against movements in the price of Swiss Roll? b. Discuss the amount of risk that would have been protected with that hedge