Question 38 10 pts You are managing Quick Trips gasoline supply. You know prices are going up with the attacks in Saudi Arabia. You have 10MM gallons of gasoline to hedge for the company for the next quarter. RBOB (unleaded gasoline) is 42,000 gallons per contract, but is delivered into New York Harbor not Tulsa. You have determined the correlation of RBOB futures with the Tulsa Rack prices is.937, the standard deviation of RBOB Dec'19 is .45, and the standard deviation for Tulsa rack is.55. Please construct a hedge for QT. You need 1. The hedge ratio 2. The number of contracts to hedge You also note that the RBOB is a futures contract that is marked to market each day. You decide to look at a "tailing hedge" using RBOB price of 1.7103 and a Tulsa price of 1.49. What is the revised 3. The hedge ratio 4. The number of contracts to hedge Upload Choose a File