A mining rm expects to sell 5,500 ounces of palladium in three months time (December) and needs to hedge it. The closest contract is gold futures traded on the CME, with December expiry, where each contract is on 100 ounces of gold. The standard deviation of changes in palladium is 0.40. The standard deviation of changes in gold futures is 0.19, and the coefcient of correlation between the two changes is 0.65. The optimal hedge ratio for a three-month contract is . Give your answer correct to three decimal places. The mining rm should take a c position on contracts on gold futures on the CME for December delivery. Give your answer as a whole number of contracts