Mr. A.T. Risk owns a food processing business, A.T. Risk Enterprises Inc. (AtRisk). AtRisk needs 1,000 tons of flour in three months' time (June 2022). AtRisk is worried that the price of flour may increase and wants to hedge against price increases of flour. Mr. A.T. Risk can not locate a forward contract, futures contract or option for flour. Thus, Mr. A.T. Risk decides to enter into an options contract to buy 25,000 bushels of wheat. Further, Mr. A.T. Risk finds out the following: at current spot prices, the total value of the flour inventory is $350,000; if the option is exercised at the strike price stipulated in the contract, the value of the wheat is $250,000 the correlation between flour and wheat prices, traditionally is approximately 45% the option expires May 1, 2022 delivery locations for wheat and flour differ Required: Comment on whether or not you believe the hedge will be highly effective. Provide a detailed explanation to support your answer. Note: This is not a one or two sentence