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Question 3 3 pts Statistical analysis indicates that the secondary-market price of comic books is positively correlated with the futures price of baseball cards. A

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Question 3 3 pts Statistical analysis indicates that the secondary-market price of comic books is positively correlated with the futures price of baseball cards. A regression of the secondary-market price of comic books on the futures price of baseball cards has a statistically significant (slope) coefficient of 2.0 and an R2 of 0.68. A dealer in comic books would like to use this information to hedge variation in the value of his inventory of 100,000 comic books. One baseball card futures contract is for the delivery of 10,000 baseball cards. The dealer wants to use baseball card futures to hedge his comic book inventory. a) Should the dealer long or short the futures contract? Please input long or short in lower case. Your answer: b) How many futures contracts should the dealer trade? Please input only the number of contracts to trade; round the number to the nearest whole number. Your

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