Please Show your works Question 1: Cargill will purchase 4 million bushels of Corn in three months and hedges using Corn futures. From histo cal data we know that F-0339. s-00225, and -o947 a. Find out the Optimal Hedge Ratio. b. If the size of one futures contract of corn is 5000 bushels then find the Optimal number of contracts assuming no daily settlement c. The spot price is S3.74 and the futures price is $3.99 (both per bushel). Find the Optimal number of contracts after tailing adjustment Question 2 An investor takes long position in five August Gold futures contract. Each contract size is 100 troy ounces. Futures price is $1356.20. Initial margin requirement is $3,500 per contract and the maintenance margin is $2,500 per contract. Find out at what price the margin call will take place? After the margin call, how much the investor will have to deposit in the margin account