Q4. A trader owns 55,000 units of a commodity with current market price is $28 /unit and the standard deviation of this spot price of is $.43. Use a cross hedge with futures for 5,000 units each; the current futures price for delivery at T is $27/ unit and the standard deviation of this futures price is $.40; the correlation coefficient of the spot and the futures prices changes is .95. The trader uses the minimum ,variance hedge ratio and hedges the value of the commodity for the next three months.. 4.1 Calculate the minimum variance hiedge ratio. 4.2 What hedge should be opened? Why. 4.3 Calculate the optimal number of futures to be used in the hedge