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A car company needs to buy 8 8 3 metric tons of aluminum in 6 months. It has decided to use futures contracts on aluminum
A car company needs to buy metric tons of aluminum in months. It has decided to use futures contracts on aluminum to hedge its position. Each aluminum futures contract covers metric tons. The spot price of aluminum is $ per ton, while the futures price for delivery in months is $ per ton.
How many futures contracts should the company trade to minimize the risk with tailing the position rounded to the nearest integer Enter a short position as a negative number and a long position as a positive number.
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