An airline expects to purchase 2 million gallons of jet fuel in 1 month and decides to use heating oil futures for hedging. We suppose that the Table below gives, for 15 successive months, historical data on Sj, the jet fuel price per gallon and Sh, the heating oil price per gallon. (a) What are the standard deviations of Sj and Sh,j and h ? What is the correlation between Sj and Sh, ? (b) What is the profit in 1 month when you enter into a long position of heating oil futures with notional value h2 million? (c) What is the variance minimizing hedge ratio h ? (d) Suppose each heating oil contract is on 42,000 gallons of heating oil. What is the number of contracts H that minimizes the variance of profit