Suppose that the standard deviation of monthly changes in the price of commodity A is $1.3. The standard deviation of monthly changes in a futures price for a contract on commodity B (which is similar to commodity A) is $7.5. The R-square of a regression of change in commodity prices on the change in futures price is 81%. What hedge ratio should be used when hedging a one month exposure to the price of commodity A?

Answer: 0.16