Hedging using futures You are an ostrich farmer and would like to hedge the risk you face due to ostrich meat price fluctuations. Unfortunately, there are no ostrich futures contracts. You have noted that the correlation between the price of ostrich meat and changes in beef futures prices is 0.7. However ostrich meat is much more volatility, with a standard deviation of daily changes of $0.3 per pound, versus beef futures, at only $0.1 per pound. You would like to hedge the risk from selling 100000 pounds of ostrich meat. Each beef contract covers 50000 pounds of beef. What position should you take in the beef futures market