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An Airline will purchase 3 million gallons of jet fuel in three months and hedges using heating oil futures. From historical data, = 0.0313, =

An Airline will purchase 3 million gallons of jet fuel in three months and hedges using heating oil futures. From historical data, = 0.0313, = 0.0263, = 0.928. Assume the spot price is 5.00 and the futures price is 4.8. The optimal number of contracts assuming no daily settlement is __________. The optimal number of contracts after tailing is __________.

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