Futures and Forwards:

\begin{tabular}{|l|r|c|c|} \hline & \begin{tabular}{c} Volume per \\ Contract \end{tabular} & Units & Price \\ \hline Cotton Dec & 50,000 & cents per lbs & 62.7900 \\ \hline Cotton Mar 17 & 50,000 & cents per lbs & 61.9100 \\ \hline \end{tabular} \begin{tabular}{|l|c|} \hline Sell in millions by March 2017= & 4,000,000 \\ \hline Standard Deviation of Spot price = & 4.000% \\ \hline Standard Deviation of Future price = & 3.500% \\ \hline Correlation = & 0.80x \\ \hline \end{tabular} a \begin{tabular}{|l|l|} \hline Optimum Ratio for 100% & \\ \hline Optimized & \\ \hline Optimized Ratio adjusted & \\ \hline Total Contracts & \\ \hline Optimum number of contracts (rounded) & \\ \hline \end{tabular} b Transaction on Delivery/Expiration Day \begin{tabular}{|l|c|c|c|} \hline Increase/Decrease in Spot Prices & $0.05 & $0.00 & $0.10 \\ \hline Scenarios - Spot Prices & $0.67 & $0.62 & $0.52 \\ \hline \hline Cost from cotton sales & & & \\ \hline + Profit/Loss form Forward Contract & & & \\ \hline Net Payment for the European Goods & & & \\ \hline \end{tabular} \begin{tabular}{|l|r|c|c|} \hline & \begin{tabular}{c} Volume per \\ Contract \end{tabular} & Units & Price \\ \hline Cotton Dec & 50,000 & cents per lbs & 62.7900 \\ \hline Cotton Mar 17 & 50,000 & cents per lbs & 61.9100 \\ \hline \end{tabular} \begin{tabular}{|l|c|} \hline Sell in millions by March 2017= & 4,000,000 \\ \hline Standard Deviation of Spot price = & 4.000% \\ \hline Standard Deviation of Future price = & 3.500% \\ \hline Correlation = & 0.80x \\ \hline \end{tabular} a \begin{tabular}{|l|l|} \hline Optimum Ratio for 100% & \\ \hline Optimized & \\ \hline Optimized Ratio adjusted & \\ \hline Total Contracts & \\ \hline Optimum number of contracts (rounded) & \\ \hline \end{tabular} b Transaction on Delivery/Expiration Day \begin{tabular}{|l|c|c|c|} \hline Increase/Decrease in Spot Prices & $0.05 & $0.00 & $0.10 \\ \hline Scenarios - Spot Prices & $0.67 & $0.62 & $0.52 \\ \hline \hline Cost from cotton sales & & & \\ \hline + Profit/Loss form Forward Contract & & & \\ \hline Net Payment for the European Goods & & & \\ \hline \end{tabular}