A consumer wants to hedge the purchase of 5.700 tons of commodity A in one month, using a futures contract on commodity B. The size of a futures contract is 100 tons. The standard deviation of monthly changes in the price of commodity A is $2. The standard deviation of monthly changes in the futures price is $3. The correlation between the futures price and the commodity price is 0.9. Describe the hedging strategy Select one: A consumer wants to hedge the purchase of 5.700 tons of commodity A in one month, using a futures contract on commodity B. The size of a futures contract is 100 tons. The standard deviation of monthly changes in the price of commodity A is $2. The standard deviation of monthly changes in the futures price is $3. The correlation between the futures price and the commodity price is 0.9. Describe the hedging strategy Select one