A company wishes to hedge its exposure to a new fuel whose price changes have a 0.95 correlation with gasoline futures price changes. The company will lose $8.4 million for each 10-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 30% 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? (c) ) Should the hedger take a long or short futures position? (d) How many gasoline futures contracts should be traded? (Each futures contract is on 42,000 gallons).