Given the following information, answer the question step by step. No mark will be given if you skip the steps

Paul is interested in investment.

Paul is holding a HSC stock now priced at $50 per share. The following securities are also traded in the market now:

HSC Futures: futures price $55 per share, expiry 1-month later.

HSC Call option: exercise price $50 per share, expiry 1-month later, option premium $3.

HSC Put option: exercise price $50 per share, expiry 1-month later, option premium $5.

b) Paul wonders if it would be better to use futures contract instead of option for hedging purpose. Advise Paul what futures position she should engage, and the advantages and the disadvantages of using futures instead of option for hedging purpose.