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A company has 36000 units of commodity A to sell on Oct. The firm decide to hedge with a contract on commodity B (which is

A company has 36000 units of commodity A to sell on Oct. The firm decide to hedge with a contract on commodity B (which is similar to commodity A). The optimal hedge ratio is 1.5. The futures price for a contract on commodity B is $90. The size of one Futures contract on commodity B is 6000 units. What trade is necessary?

A.
Long 6 contracts

B.
Short 6 contracts

C.
Long 9 contracts

D.
Short 9 contracts

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