It is March 1, 2020 and a company enters into a contract to purchase 750,000 barrels of jet oil in three months. The company decides to use futures on crude oil for hedging. The contract size of the crude oil futures is 1,000 barrels. The standard deviations and correlations estimated by historical date for jet oil price and crude oil futures price are

theta s= 0.0486 theta f =0.0327 p=0.971

1) What position should this company take in the futures contract? 2) What is the optimal hedge ratio? 3) What is the optimal number of contracts? (round the answer to the nearest whole number)