A car company needs to buy 890 metric tons of aluminum in 6 months. It has decided to use futures contracts on aluminum to hedge its position. Each aluminum futures contract covers 25 metric tons. The spot price of aluminum is $1,838 per ton, while the futures price for delivery in 6 months is $2,006 per ton.

How many futures contracts should the company trade to minimize the risk without tailing the position (rounded to the nearest integer)?

How many futures contracts should the company trade to minimize the risk with tailing the position (rounded to the nearest integer)?

How many futures contracts should the company trade if it decides to tail its position and use a hedge ratio of 0.7 instead (rounded to the nearest integer)?