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Company Z wishes to hedge its exposure to cotton with corn futures over the next three months. The market price of cotton per ton and

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Company Z wishes to hedge its exposure to cotton with corn futures over the next three months. The market price of cotton per ton and future price of corn per ton for 8 months are given. The company has an exposure to the price of 1000 tons of the cotton. Each futures contract is on 42 tons of corn. How many corn contracts should be traded? (Answer is rounded) Corn future price per Cotton price per Month ton ton 1 173 1770 2 172 1776 3 180 1785 4 185 1798 5 185 1798 6 182 1788 7 188 1902 8 184 1905

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