Develop a proposal for hedging the foreign exchange and natural gas price risks? and Develop a hedging solution for those risks need to be hedged. (using financial instrument like option)

Methanol sales: The ENERTRAN plant produces 3,000 metric tons of methanol per day, and operates 330 days per year (planning 35 days for downtime). Assume that methanol domestic and international sales are equally distributed over time. Domestic and Asia sales are priced in USD and are 60% of production. European sales are priced in Euro, and are 40% of production. However, ENERTRAN has the ability to vary their domestic and export amounts (exports may be down/up 33%-47% of production) at their discretion. The horizon for a hedging strategy will go no further than 5 years from November, 2014 Methanol pricing As of November. 2014 the posted price for methanol (per metric ton, or MT) in the US is USD 480. The posted price of methanol per MT for Europe is EUR 354. You are fee to make your own assumptions regarding the future range of methanol prices in USD, within a 20% range up and/or down over the next five years. The Euro pricing for methanol is highly correlated with the value of EUR/USD at time of sale. The following chart illustrates the price correlation between crude oil, natural gas, and methanol (USD price). You may use this chart as a resource for your methanol pricing speculations. Note: The methanol chart is priced in S/GAL. To convert to S/MT usea conversion rate of 332.6 Gal per MT Crude oil US Natural gas US http://spendmatters.com/2014/06/23/m3ethanol-the-cheaper-g itute/