1. "A company know that it will purchase an asset in the future. What is the optimal number of futures contracts to deploy, given the following information: The correlation coefficient between changes in the underlying asset's price and changes in the futures contract price is 0.95, the variance of the changes in the underlying asset is 0.090, while the variance of the changes in the futures contract is price is 0.013. Futures contract size is 200 units and size of the spot position in the asset is 400 units."

A. Long 13 Futures Contracts

B. Long 2.5 Futures Contracts

C. Long 5 Futures Contracts

D. Short 2.5 Futures Contracts

E. Short 6.5 Futures Contracts