A company is trying to hedge the risk exposure of new fuel. Changes in the price of new fuels have a correlation coefficient of 0.5 with changes in gasoline futures prices. Companies will lose $1 million if the price per gallon of new fuel rises by a cent over the next three months. The price change of new fuel has a standard deviation value of 20% greater than that of gasoline futures. If gasoline futures are used to hedge risks, what is the optimal hedge ratio? How many gallons of risk exposure to a company's municipal fuel? How many gallons of gasoline gifts should a company take? How many contracts are gasoline futures to be traded? However, the one contract for gasoline futures is 42,000 gallons.