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A German plastics company would like to hedge the purchase of 100 tons of polymer-Q (an input into its manufacturing process for commercial plastic) with

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A German plastics company would like to hedge the purchase of 100 tons of polymer-Q (an input into its manufacturing process for commercial plastic) with futures contracts on guano. A regression of the spot price of polymer-Q on the futures price of guano has a regression beta (slope) coefficient of -1.49. One guano futures contract is for the delivery of 10 tons of guano. a) Should the company long or short the futures contract? Please input long or short in lower case. Your answer: b) How many futures contracts should the company trade? Please input only the number of contracts to trade; round the number to the nearest whole number. Your

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