PQZ has entered a swap with a dealer on 50,000 bushels of corn. For each of the next three months, PQZ will pay the dealer $4.00 per bushel minus the spot price of corn. The corn forward prices for each of the next three months are $3.80, $3.95 and $4.20 per bushel. The riskless interest rate is 4% (annualized and continuously compounded) for all maturities less than six months.

How would the dealer use forward contracts to hedge the risk of its position in the swap?