A large food producer wishes to hedge an expected purchase of 1 million pounds sunflower oil using the soybean oil futures contract. Each soybean oil futures contract calls for delivery of 60,000 pounds of oil. An examination of past prices of soybean oil futures and spot sunflower oil prices shows the following: - The correlation (S,F) between the prices is is 0.68. - The standard deviation of the spot price (s) is 0.0120 - The standard deviation of the futures price (F) is 0.0135 a) Calculate the optimal number of soybean contracts the farmer should use to hedge the sunflower oil purchase. b) Should the food producer take a long or short positon in soybean oil futures to hedge the sunflower oil purchase