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The current price of Delta Airlines stock is $8. In the next year, this stock price can either go up by $4.4 or go down by $2. The stock pays no dividends. The one-year risk-free interest rate is 5% and will remain constant. Calculate the risk-neutral probability of stock going up for this year (i.e., find u ) 0.2710.3750.6250.729 None of the above 14 Suppose today is February 12, 2022, and your farm produces corn. You expect to harvest and sell 250,000 bushels of corn in May 2022. You would like to lock in your price today because you are concerned that corn prices might go down between now and May. To hedge your risk exposure, should you hold a long position or a short position in the futures contracts? How many contracts do you need? Note that each corn futures contract is for 5,000 bushels. Assume that the sensitivity of the corn prices to the S\&P500 index is 0.3. Short 50 contracts Short 25 contracts Long 50 contracts Long 25 contracts None of the above