A long hedger is looking to use futures contracts to hedge the effective price they will pay when buying an asset in the future. However, futures contracts on the asset being hedged are not available, nor do the maturities of the available contracts coincide with the expected purchase date of the underlying asset. Which of the following recommendations would you make to the hedger? Choose a futures contract written on an asset whose price increments are:

Group of answer choices

uncorrelated with the asset being hedged, and with a maturity as close as possible, but before, the hedging horizon.

uncorrelated with the asset being hedged, and with a maturity as close as possible, but after, the hedging horizon.

highly correlated with the asset being hedged, and with a maturity as close as possible, but after, the hedging horizon.

highly correlated with the asset being hedged, and with a maturity as close as possible, but before, the hedging horizon.

uncorrelated with the asset being hedged, and with a maturity as close as possible, but after, the hedging horizon.