Question 3 - Part (B) Hedging Using Derivatives (10%) Assume that you are the financial manager of a pizza company, which is a buyer of cheese. Your company will need to purchase cheese during the month of December 2020 and predicts that there will be a significant increase in the prices of cheese due to high demand and shortage in cheese. Assume that your company does not have any facility for storage of cheese and you cannot purchase cheese from the spot market in advance. There are futures contracts on dairy products (such as futures on cheese, milk, butter, etc.) traded in the Chicago Board Options Exchange (CBOE): https://www.cmegroup.com/trading/agricultural/dairy.html Answer the following question: Given the above information, discuss one example of hedging strategy using derivatives that can hedge against the risk of increase in cheese prices. Importantly, explain your hedging strategy (including information on the derivatives contracts, position, etc.) as clear as possible. Note: Your hedging strategy should be based on derivatives only (not the spot market)