A company wishes to hedge its exposure to a new fuel whose spot price changes have a 0.6 correlation with gasoline futures price changes. The company will lose $1 million for each one cent increase in the price per gallon of the new fuel over the next three months. The new fuel's price change has a standard deviation that is 50% greater than price changes in gasoline futures prices. a) If gasoline futures are used to hedge the exposure, what should the hedge ratio be? b) What is the company's exposure measured in gallons of the new fuel? What position measured in gallons should the company take in gasoline futures? c) Suppose each futures contract is on 42,000 gallons of gasoline. How many gasoline futures contracts should be traded? d) Suppose the spot price of the new fuel is $2.05 per gallon and the futures price of gasoline is $1.98 per gallon. With an adjustment for the daily settlement of futures, how many gasoline futures contracts should be traded