BC Petroleum has a contract to deliver 4,000,000 gallons of gasoline in August 202X. However, it is concerned that the current gasonline prices might fall over the next few months. Spot price for gasoline today is $1.50 a gallon. Futures Contracts for gasoline (contract unit of 42,000 gallons) for August 202X delivery are quoted at $1.53 a gallon. a. What should BC Petroleum do with regards using Futures Contracts to reduce the risk of a gasoline price decrease? b. Suppose gasoline prices do fall by $.10 a gallon in August 202X to a Spot Price at $1.40 a gallon and a Futures Contract price of $1.43 a gallon on closed out, how well did BC Petroleum do with regard to protecting itself from a price decrease using the hedge from part a?